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2:27:35	>>> THIS IS AN NBC NEWS SPECIAL
2:27:39	REPORT.
2:27:39	HERE'S LESTER HOLT AND SAVANNAH
2:27:42	GUTHRIE.
2:27:42	>> GOOD DAY, EVERYONE.
2:27:44	WE'RE COMING ON THE AIR ON A
2:27:46	VERY BUSY NEWS DAY TO TELL YOU
2:27:50	WE HAVE MARK ZUCKERBERG ABOUT TO
2:27:51	TESTIFY BEFORE CONGRESS.
2:27:53	HE WILL LIKELY FACE VERY TOUGH
2:27:54	QUESTIONS ABOUT HIS COMPANY'S
2:27:56	ABILITY TO SAFEGUARD THE
2:27:57	PERSONAL DATA OF TENS OF
2:27:58	MILLIONS OF FACEBOOK USERS,
2:28:01	INFORMATION IMPROPERLY OBTAINED
2:28:03	BY THE DATA COMPANY CAMBRIDGE
2:28:08	ANALYTICA.
2:28:09	>> AND THE 23-YEAR-OLD UNDER
2:28:11	INTENSE PUBLIC SCRUTINY, LESS
2:28:18	TRUST WITH THE THIRD LARGEST
2:28:22	INDUSTRY, LESTER.
2:28:24	>> THE CANCELLATION OF THE
2:28:25	PRESIDENT'S SCHEDULED FIRST TRIP
2:28:27	TO SOUTH AMERICA THIS WEEK AND
2:28:29	FALLOUT FROM THE FBI RAID
2:28:31	YESTERDAY ON THE OFFICES OF THE
2:28:33	PRESIDENT'S PERSONAL LAWYER
2:28:34	MICHAEL COHEN.
2:28:34	AS YOU CAN SEE, THERE ARE A LOT
2:28:36	OF MOVING PARTS, A LOT OF THINGS
2:28:38	WE'RE WATCHING.
2:28:38	WE'RE MONITORING ALL OF THAT.
2:28:40	WE'LL BRING YOU DEVELOPMENTS AS
2:28:41	THEY WARRANT.
2:28:42	>> MEANWHILE ON CAPITOL HILL,
2:28:45	YOU SEE MARK ZUCKERBERG SET TO
2:28:46	MAKE HIS OPENING STATEMENT IN
2:28:47	JUST A FEW MOMENTS.
2:28:49	THIS IS THE JOINT COMMITTEE, ONE
2:28:51	OF THE MOST EAGERLY ANTICIPATED
2:28:53	HEARINGS IN RECENT MEMORY.
2:28:54	NO FEWER THAN 43 U.S. SENATORS
2:28:57	SET TO QUESTION MARK ZUCKERBERG.
2:29:00	NBC'S JOLENE KENT COVERS THIS
2:29:03	FOR US.
2:29:04	SHE'S BEEN FOLLOWING FACEBOOK'S
2:29:08	STORY.
2:29:09	JO, WE EXPECT TO HEAR THE WORDS
2:29:12	"I'M SORRY" HERE TODAY.
2:29:14	>> THAT'S RIGHT, THE SEVENTH
2:29:16	RICHEST PERSON IN THE WORLD, WE
2:29:19	EXPECT HIM TO SEVER PERSONAL
2:29:22	TIES.
2:29:22	HE WILL BE TAKING RESPONSIBILITY
2:29:23	AND ISSUING A NEW LEVEL OF
2:29:25	ACTION AND ADDRESSING THE
2:29:26	PRIVACY CONCERNS THAT COME IN
2:29:27	THE AFTERMATH OF THE CAMBRIDGE
2:29:29	ANALYTICA SCANDAL THAT MAY HAVE
2:29:30	IMPACTED UP TO 87 MILLION
2:29:32	FACEBOOK USERS, MOST OF WHOM
2:29:34	LIVE IN THE U.S.
2:29:35	HIS TESTIMONY, WHICH HE HAS NOT
2:29:37	YET SPOKEN JUST YET, BUT HE'S
2:29:39	EXPECTED TO ADDRESS NOT ONLY THE
2:29:41	SENATORS BUT USERS OUT THERE WHO
2:29:43	HAVE BEGUN LEAVING FACEBOOK AND
2:29:46	DELETING THIS PARTICULAR APP AND
2:29:47	MIGRATING TO OTHER SOCIAL MEDIA.
2:29:49	SO WHAT WE'RE EXPECTING TO HEAR
2:29:51	IS NOT JUST AN APOLOGY BUT
2:29:52	SOLUTIONS.
2:29:53	LAWMAKERS HERE ON CAPITOL HILL
2:29:54	ARE TELLING ME THEY ARE NOT
2:29:56	SATISFIED NECESSARILY WITH WHAT
2:29:57	ZUCKERBERG HAS PUT FORTH SO FAR.
2:29:59	HE'S ALREADY ROLLED OUT SOME
2:30:02	PRIVACY CHANGES WHERE
2:30:04	CENTRALIZATION OF YOUR PRIVACY
2:30:09	SETTINGS, BUT THERE LIKELY WILL
2:30:11	BE SOME REGULATORY SCRUTINY HERE
2:30:12	AS WELL, SAVANNAH.
2:30:14	>> LET'S BRING IN THE CO-FOUNDER
2:30:16	AND EXECUTIVE EDITOR OF THE
2:30:20	EXECUTIVE TECH SITE RECODE AND
2:30:22	HAS BEEN FOLLOWING FACEBOOK
2:30:23	CLOSELY.
2:30:24	TARA, WE KNOW HE'S GOING TO
2:30:25	APOLOGIZE, WE KNOW THERE IS A PR
2:30:27	ASPECT TO THIS, BUT FROM A
2:30:29	BUSINESS STANDPOINT, WHAT ARE
2:30:31	THE GOALS THAT ZUCKERBERG FACES
2:30:34	HERE?
2:30:34	>> HE THINK HE HAS TO STAUNCH
2:30:35	THE CRITICISM AND AT LEAST HAVE
2:30:37	SOME ANSWERS THAT THEY'RE GOING
2:30:39	TO FIX THE PROBLEMS THEY
2:30:41	CREATED.
2:30:41	IT'S A GIANT MESS, AND SAYING
2:30:43	I'M SORRY, I'M SORRY, I'M SORRY
2:30:47	PROBABLY WON'T CUT IT HERE, BUT
2:30:49	HE'LL PROBABLY SAY I'M SORRY IN
2:30:51	HIS OPENING STATEMENT.
2:30:52	THERE ARE SOME POLITICIANS
2:30:53	ASKING QUESTIONS, AND THERE ARE
2:30:56	SOME THAT ARE PRETTY HOSTILE
2:30:57	TOWARD WHAT FACEBOOK HAS DONE.
2:30:59	>> HE'S BEEN NOTED AS A GUY WHO
2:31:01	IS NOT NECESSARILY COMFORTABLE
2:31:02	IN FRONT OF CROWDS, CERTAINLY
2:31:04	CAMERAS, AND THERE IS A LOT OF
2:31:05	ATTENTION ON HIM NOW.
2:31:06	DOES THAT PLAY IN HIS FAVOR IN
2:31:08	SOME WAYS IN TERMS OF
2:31:11	PERCEPTIONS?
2:31:11	>> I GUESS.
2:31:14	I WROTE HIS COLUMN TODAY SAYING
2:31:16	THESE ARE BOYS UNDER SCRUTINY
2:31:18	AND IT'S REALLY HARD FOR HIM.
2:31:19	HE'S A MAN RUNNING A MAJOR
2:31:21	COMPANY.
2:31:21	HE'S A BILLIONAIRE.
2:31:22	HE STARTED ONE OF THE MOST
2:31:24	POWERFUL COMPANIES ON THE
2:31:25	PLANET.
2:31:26	HE SHOULD BE ABLE TO HANDLE IT,
2:31:27	AND IF HE CAN'T HANDLE IT, HE
2:31:29	SHOULDN'T BE CEO OF FACEBOOK.
2:31:32	>> THANK YOU VERY MUCH.
2:31:34	ZUCKERBERG IS NOW BEING
2:31:36	INTRODUCED IN OPENING STATEMENTS
2:31:38	OF THE CHAIRMAN AND RANKING
2:31:39	MEMBERS OF THESE TWO COMMITTEES.
2:31:43	THIS IS THE SCIENCE AND
2:31:44	TRANSPORTATION COMMITTEE.
2:31:45	CHUCK GRASSLEY INTRODUCING MARK
2:31:47	ZUCKERBERG.
2:31:47	>> AS I MENTIONED PREVIOUSLY,
2:31:49	HIS COMPANY NOW HAS OVER 40
2:31:52	BILLION OF ANNUAL REVENUE AND
2:31:53	OVER 2 BILLION MONTHLY ACTIVE
2:31:57	USERS.
2:31:57	MR. ZUCKERBERG, ALONG WITH HIS
2:31:59	WIFE, ALSO ESTABLISHED THE
2:32:02	CHAN-ZUCKERBERG INITIATIVE TO
2:32:06	FURTHER PHILANTHROPIC CAUSES.
2:32:09	I NOW TURN TO YOU.
2:32:10	WELCOME TO THE COMMITTEE, AND
2:32:11	WHATEVER YOUR STATEMENT IS
2:32:14	ORALLY, IF YOU HAVE A LONGER
2:32:15	ONE, IT WILL BE INCLUDED IN THE
2:32:16	RECORD.
2:32:16	SO PROCEED, SIR.
2:32:18	>> CHAIRMAN GRASSLEY, CHAIRMAN
2:32:21	THUNE, RANKING MEMBER FEINSTEIN
2:32:22	AND RANKING MEMBER NELSON AND
2:32:24	MEMBERS OF THE COMMITTEE, WE
2:32:25	FACE A NUMBER OF IMPORTANT
2:32:27	ISSUES AROUND PRIVACY, SAFETY
2:32:30	AND DEMOCRACY.
2:32:31	AND YOU WILL RIGHTFULLY HAVE
2:32:32	SOME HARD QUESTIONS FOR ME TO
2:32:34	ANSWER.
2:32:35	BEFORE I TALK ABOUT THE STEPS
2:32:36	WE'RE TAKING TO ADDRESS THEM, I
2:32:37	WANT TO TALK ABOUT HOW WE GOT
2:32:40	HERE.
2:32:40	FACEBOOK IS AN IDEALISTIC AND
2:32:44	OPTIMISTIC COMPANY.
2:32:45	FOR MOST OF OUR EXISTENCE, WE
2:32:47	FOCUSED ON ALL OF THE GOOD THAT
2:32:49	CONNECTING PEOPLE CAN DO.
2:32:50	AND AS FACEBOOK HAS GROWN,
2:32:51	PEOPLE EVERYWHERE HAVE GOTTEN A
2:32:53	POWERFUL NEW TOOL FOR STAYING
2:32:55	CONNECTED TO THE PEOPLE THEY
2:32:57	LOVE, FOR MAKING THEIR VOICES
2:32:59	HEARD AND FOR BUILDING
2:33:00	COMMUNITIES AND BUSINESSES.
2:33:02	JUST RECENTLY, WE'VE SEEN THE
2:33:04	#METOO MOVEMENT AND THE MARCH
2:33:06	FOR OUR LIVES ORGANIZED AT LEAST
2:33:07	IN PART ON FACEBOOK.
2:33:09	AFTER HURRICANE HARVEY, PEOPLE
2:33:10	CAME TOGETHER TO RAISE MORE THAN
2:33:12	$20 MILLION FOR RELIEF.
2:33:14	AND MORE THAN 70 MILLION SMALL
2:33:17	BUSINESSES USED FACEBOOK TO
2:33:19	CREATE JOBS AND GROW.
2:33:23	BUT IT'S CLEAR NOW WE DIDN'T DO
2:33:24	ENOUGH TO PREVENT THESE TOOLS
2:33:26	FROM BEING USED FOR HARM AS
2:33:28	WELL.
2:33:28	THAT GOES FOR FAKE NEWS, FOR
2:33:31	FOREIGN INTERFERENCE IN
2:33:32	ELECTIONS AND HATE SPEECH AS
2:33:33	WELL AS DEVELOPERS AND DATA
2:33:35	PRIVACY.
2:33:35	WE DIDN'T TAKE A BROAD ENOUGH
2:33:37	VIEW OF OUR RESPONSIBILITY AND
2:33:39	THAT WAS A BIG MISTAKE.
2:33:40	AND IT WAS MY MISTAKE.
2:33:42	AND I'M SORRY.
2:33:44	I STARTED FACEBOOK, I RUN IT,
2:33:48	AND I'M RESPONSIBLE FOR WHAT
2:33:50	HAPPENS HERE.
2:33:51	SO NOW WE HAVE TO GO THROUGH ALL
2:33:55	OF OUR RELATIONSHIPS WITH PEOPLE
2:33:57	AND MAKE SURE WE'RE TAKING A
2:33:59	BROAD ENOUGH VIEW OF OUR
2:34:01	RESPONSIBILITY.
2:34:01	IT'S NOT ENOUGH TO JUST CONNECT
2:34:03	PEOPLE.
2:34:03	WE HAVE TO MAKE SURE THOSE
2:34:06	CONNECTIONS ARE POSITIVE.
2:34:07	IT'S NOT ENOUGH TO JUST GIVE
2:34:09	PEOPLE A VOICE, WE HAVE TO MAKE
2:34:11	SURE PEOPLE AREN'T USING IT TO
2:34:12	HARM OTHER PEOPLE OR TO SPREAD
2:34:15	MISINFORMATION.
2:34:15	IT'S NOT ENOUGH JUST TO GIVE
2:34:17	PEOPLE CONTROL OVER THEIR
2:34:18	INFORMATION.
2:34:18	WE NEED TO MAKE SURE THE
2:34:20	DEVELOPERS THEY SHARE IT WITH
2:34:22	PROTECT THEIR INFORMATION, TOO.
2:34:24	ACROSS THE BOARD WE HAVE A
2:34:25	RESPONSIBILITY TO NOT JUST BUILD
2:34:27	TOOLS BUT TO MAKE SURE THEY'RE
2:34:28	USED FOR GOOD.
2:34:30	IT WILL TAKE SOME TIME TO WORK
2:34:32	THROUGH ALL THE CHANGES WE NEED
2:34:33	TO MAKE ACROSS THE COMPANY, BUT
2:34:35	I'M COMMITTED TO GETTING THIS
2:34:37	RIGHT.
2:34:38	THIS INCLUDES THE BASIC
2:34:39	RESPONSIBILITY OF PROTECTING
2:34:41	PEOPLE'S INFORMATION WHICH WE
2:34:42	FAILED TO DO WITH CAMBRIDGE
2:34:45	ANALYTICA.
2:34:45	SO HERE ARE A FEW THINGS THAT WE
2:34:48	ARE DOING TO ADDRESS THIS AND TO
2:34:50	PREVENT IT FROM HAPPENING AGAIN.
2:34:53	FIRST, WE'RE GETTING TO THE
2:34:54	BOTTOM OF EXACTLY WHAT CAMBRIDGE
2:34:56	ANALYTICA DID AND TELLING
2:34:58	EVERYONE AFFECTED.
2:34:59	WHAT WE KNOW NOW IS THAT
2:35:01	CAMBRIDGE ANALYTICA IMPROPERLY
2:35:03	ACCESSED SOME INFORMATION ABOUT
2:35:04	MILLIONS OF FACEBOOK MEMBERS BY
2:35:06	BUYING IT FROM AN APP DEVELOPER.
2:35:11	THAT INFORMATION -- THIS WAS
2:35:13	INFORMATION THAT PEOPLE
2:35:14	GENERALLY SHARE PUBLICLY ON
2:35:16	THEIR FACEBOOK PAGES, LIKE NAMES
2:35:18	AND THEIR PROFILE PICTURE AND
2:35:20	THE PAGES THEY FOLLOW.
2:35:21	WHEN WE FIRST CONTACTED
2:35:22	CAMBRIDGE ANALYTICA, THEY TOLD
2:35:24	US THEY HAD DELETED THE DATA.
2:35:26	ABOUT A MONTH AGO, WE HEARD NEW
2:35:28	REPORTS THAT SUGGESTED THAT
2:35:29	WASN'T TRUE.
2:35:30	NOW WE'RE WORKING WITH
2:35:32	GOVERNMENTS IN THE U.S., THE
2:35:34	U.K. AND AROUND THE WORLD TO DO
2:35:35	A FULL AUDIT OF WHAT THEY'VE
2:35:38	DONE AND TO MAKE SURE THEY GET
2:35:39	RID OF ANY DATA THEY MAY STILL
2:35:41	HAVE.
2:35:41	SECOND, TO MAKE SURE NO OTHER
2:35:43	APP DEVELOPERS OUT THERE ARE
2:35:45	MISUSING DATA, WE'RE NOW
2:35:47	INVESTIGATING EVERY SINGLE ACT
2:35:49	THAT HAD ACCESS TO A LARGE
2:35:51	AMOUNT OF INFORMATION IN THE
2:35:52	PAST.
2:35:52	IF WE FIND THAT SOMEONE
2:35:54	IMPROPERLY USED DATA, WE'RE
2:35:55	GOING TO BAN THEM FROM FACEBOOK
2:35:57	AND TELL EVERYONE AFFECTED.
2:35:59	THIRD, TO PREVENT THIS FROM EVER
2:36:01	HAPPENING AGAIN GOING FORWARD,
2:36:02	WE'RE MAKING SURE THAT
2:36:05	DEVELOPERS CAN'T ACCESS AS MUCH
2:36:08	INFORMATION NOW.
2:36:09	THE GOOD NEWS HERE IS WE ALREADY
2:36:11	MADE BIG CHANGES TO OUR PLATFORM
2:36:13	IN 2014 THAT WOULD HAVE KEPT
2:36:16	THIS SITUATION WITH CAMBRIDGE
2:36:19	ANALYTICA FROM OCCURRING TODAY.
2:36:20	BUT THERE IS MORE TO DO, AND YOU
2:36:21	CAN FIND MORE DETAILS ON THE
2:36:23	STEPS I'M TAKING IN MY WRITTEN
2:36:25	STATEMENT.
2:36:25	MY TOP PRIORITY HAS ALWAYS BEEN
2:36:27	OUR SOCIAL MISSION OF CONNECTING
2:36:30	PEOPLE, BUILDING COMMUNITY AND
2:36:30	BRINGING THE WORLD CLOSER
2:36:33	TOGETHER.
2:36:34	ADVERTISERS AND DEVELOPERS WILL
2:36:36	NEVER TAKE PRIORITY OVER THAT AS
2:36:38	LONG AS I AM RUNNING FACEBOOK.
2:36:40	I STARTED FACEBOOK WHEN I WAS IN
2:36:42	COLLEGE.
2:36:43	WE'VE COME A LONG WAY SINCE
2:36:45	THEN.
2:36:45	WE NOW SERVE MORE THAN 2 BILLION
2:36:47	PEOPLE AROUND THE WORLD, AND
2:36:49	EVERY DAY PEOPLE USE OUR
2:36:51	SERVICES TO STAY CONNECTED WITH
2:36:52	THE PEOPLE THAT MATTER TO THEM
2:36:55	MOST.
2:36:55	I BELIEVE DEEPLY IN WHAT WE'RE
2:36:58	DOING, AND I KNOW THAT WHEN WE
2:36:59	ADDRESS THESE CHALLENGES, WE'LL
2:37:01	LOOK BACK AND VIEW HELPING
2:37:03	PEOPLE CONNECT AND GIVING MORE
2:37:04	PEOPLE A VOICE AS A POSITIVE
2:37:05	FORCE IN THE WORLD.
2:37:07	I REALIZE THE ISSUES WE'RE
2:37:09	TALKING ABOUT TODAY AREN'T JUST
2:37:10	ISSUES FOR FACEBOOK IN OUR
2:37:12	COMMUNITY, THEY'RE ISSUES AND
2:37:13	CHALLENGES FOR ALL OF US AS
2:37:17	AMERICANS.
2:37:18	THANK YOU FOR HAVING ME HERE
2:37:19	TODAY AND I'M READY TO TAKE YOUR
2:37:21	QUESTIONS.
2:37:21	>> I'LL REMIND MEMBERS THAT
2:37:23	MAYBE WEREN'T HERE WHEN I HAD MY
2:37:25	OPENING COMMENTS THAT WE ARE
2:37:27	OPERATING UNDER THE FIVE-MINUTE
2:37:29	RULE AND THAT APPLIES TO THOSE
2:37:39	CHAIRING THE COMMITTEE AS WELL.
2:37:42	I START WITH YOU.
2:37:43	FACEBOOK HANDLES EXTENSIVE
2:37:45	AMOUNTS OF PERSONAL DATA FOR
2:37:46	BILLIONS OF USERS.
2:37:48	A SIGNIFICANT AMOUNT OF THAT
2:37:50	DATA IS SHARED WITH THIRD-PARTY
2:37:53	DEVELOPERS WHO UTILIZE YOUR
2:37:57	PLATFORM.
2:37:57	AS OF EARLY THIS YEAR, YOU DID
2:38:00	NOT ACTIVELY MONITOR WHETHER
2:38:01	THAT DATA WAS TRANSFERRED BY
2:38:04	SUCH DEVELOPERS TO OTHER
2:38:06	PARTIES.
2:38:07	MOREOVER, YOUR POLICIES ONLY
2:38:10	PROHIBIT TRANSFERS BY DEVELOPERS
2:38:11	TO PARTIES SEEKING TO PROFIT
2:38:13	FROM SUCH DATA.
2:38:15	NUMBER ONE, BESIDES PROFESSOR
2:38:19	COGAN'S TRANSFER AND NOW
2:38:24	POTENTIALLY CUBE VIEW, DO YOU
2:38:26	KNOW ANY INSTANCES WHERE
2:38:29	TRANSFERRED TO THIRD PARTY IN
2:38:30	BREACH OF FACEBOOK'S TERMS.
2:38:32	IF SO, HOW MANY TIMES HAS THAT
2:38:35	HAPPENED AND WAS FACEBOOK ONLY
2:38:37	MADE AWARE OF THAT TRANSFER BY
2:38:42	SOME THIRD PARTY?
2:38:44	>> MR. CHAIRMAN, THANK YOU.
2:38:46	WE'RE NOW CONDUCTING A FULL
2:38:47	INVESTIGATION INTO EVERY SINGLE
2:38:48	ACT THAT HAS ACCESS TO LARGE
2:38:50	AMOUNT OF INFORMATION.
2:38:52	BEFORE WE LOCK DOWN PLATFORM TO
2:38:54	PREVENT DEVELOPERS FROM
2:38:56	ACCESSING THIS INFORMATION
2:38:57	AROUND 2014.
2:38:58	WE BELIEVE WE'RE GOING TO BE
2:39:00	INVESTIGATING MANY APPS, TENS OF
2:39:02	THOUSANDS OF APPS.
2:39:03	IF WE FIND ANY SUSPICIOUS
2:39:06	ACTIVITY WE'RE GOING TO CONDUCT
2:39:07	A FULL AUDIT OF THOSE APPS TO
2:39:10	UNDERSTAND HOW THEY ARE USING
2:39:13	THEIR DATA.
2:39:14	IF WE FIND THEY ARE DOING
2:39:17	ANYTHING IMPROPER, WE WILL BAN
2:39:20	THEM FROM FACEBOOK AND TELL
2:39:21	EVERYONE AFFECTED.
2:39:21	I DON'T HAVE ANY EXAMPLES OF
2:39:23	APPS WE HAVE BANNED HERE.
2:39:25	IF YOU'D LIKE, I CAN HAVE MY
2:39:27	TEAM FOLLOW UP.
2:39:29	>> HAVE YOU REQUIRED AN AUDIT TO
2:39:31	ENSURE THE DELETION OF
2:39:33	IMPROPERLY TRANSFERRED DATA AND
2:39:35	IF SO, HOW MANY TIMES?
2:39:36	>> YES, WE HAVE.
2:39:37	I DON'T HAVE THE EXACT FIGURE ON
2:39:39	HOW MANY TIMES WE HAVE.
2:39:40	OVERALL, THE WAY WE ENFORCED OUR
2:39:43	PLATFORM POLICIES IN THE PAST,
2:39:45	IS WE HAVE LOOKED AT PATTERN OF
2:39:48	HOW APPS HAVE USED OUR APIs AND
2:39:56	ACCESSED INFORMATION AS WELL ADD
2:39:58	PEOPLE THAT HAVE MADE REPORTS.
2:39:59	GOING FORWARD, WE'RE GOING TO
2:40:01	TAKE A MORE PRO-ACTIVE POSITION
2:40:03	AND DO MUCH MORE REGULAR SPOT
2:40:05	CHECKS AND REVIEWS OF APPS AS
2:40:07	WELL AS INCREASING THE AMOUNT OF
2:40:10	AUDITS WE DO AND I CAN MAKE SURE
2:40:12	OUR TEAM FOLLOW UP WITH YOU ON
2:40:14	ANYTHING ABOUT THE SPECIFIC PAST
2:40:15	STATS THAT WOULD BE INTERESTING.
2:40:17	>> I WAS GOING TO ASSUME THAT
2:40:18	SITTING HERE TODAY YOU HAVE NO
2:40:22	IDEA AND IF I'M WRONG, YOU'RE
2:40:28	TELLING ME YOU'RE ABLE TO SUPPLY
2:40:29	THOSE FIGURES TO US, AT LEAST AS
2:40:33	OF THIS POINT?
2:40:34	>> I'LL HAVE MY TEAM FOLLOW UP
2:40:36	ON WHAT INFORMATION WE HAVE.
2:40:37	>> RIGHT NOW YOU HAVE NO
2:40:39	CERTAINTY OF WHETHER OR NOT, HOW
2:40:41	MUCH OF THAT'S GOING ON, RIGHT?
2:40:45	FACEBOOK COLLECTS MASSIVE
2:40:47	AMOUNTS OF DATA FROM CONSUMERS
2:40:50	INCLUDING CONTENT, NETWORKS,
2:40:52	CONTACT LIST, DEVICE
2:40:54	INFORMATION, LOCATION AND
2:40:59	INFORMATION FROM THIRD POLICIES.
2:41:00	YOUR DATA POLICY IS ONLY A FEW
2:41:05	PAGES LONG AND PROVIDES
2:41:05	CONSUMERS A FEW EXAMPLES OF WHAT
2:41:06	IS COLLECTED AND HOW IT MIGHT BE
2:41:08	USED.
2:41:08	THE EXAMPLES EMPHASIZE BENIGN
2:41:11	USES SUCH AS CONNECTING WITH
2:41:13	FRIENDS BUT YOUR POLICY DOES NOT
2:41:15	GIVE ANY INDICATION FOR MORE
2:41:17	CONTROVERSIAL ISSUES OF SUCH
2:41:19	DATA.
2:41:19	MY QUESTION, WHY DOESN'T
2:41:23	FACEBOOK DISCLOSE TO ITS USERS
2:41:26	ALL THE WAYS DATA MIGHT BE USED
2:41:28	BY FACEBOOK AND OTHER THIRD
2:41:30	PARTIES AND WHAT IS FACEBOOK'S
2:41:32	RESPONSIBILITY TO INFORM USERS
2:41:33	ABOUT THAT INFORMATION?
2:41:37	>> I BELIEVE IT'S IMPORTANT TO
2:41:39	TELL PEOPLE EXACTLY HOW THE
2:41:40	INFORMATION THAT THEY SHARE ON
2:41:41	FACEBOOK IS GOING TO BE USED.
2:41:43	THAT'S WHY EVERY SINGLE TIME YOU
2:41:45	GO TO SHARE SHOTGUN ON FACEBOOK
2:41:47	WHETHER IT'S A PHOTO OR A
2:41:50	MESSAGE AND MESSENGER.
2:41:52	EVERY SINGLE TIME THERE'S A
2:41:54	CONTROL RIGHT THERE ABOUT WHO
2:41:56	YOU'RE GOING TO BE SHARING IT
2:41:57	WITH WHETHER IT'S YOUR FRIENDS
2:41:59	OR PUBLIC OR SPECIFIC GROUP.
2:42:00	YOU CAN CHANGE THAT AND CONTROL
2:42:01	THAT IN LINE.
2:42:09	ABOUT PRIVACY, THIS GETS INTO AN
2:42:10	ISSUE THAT WE AND OTHERS IN THE
2:42:12	TECH INDUSTRY HAVE FOUND
2:42:14	CHALLENGING IS LONG PRIVACY
2:42:15	POLICIES ARE VERY CONFUSING.
2:42:18	IF YOU MAKE IT LONG AND SPELL
2:42:19	OUT ALL THE DETAIL THEN YOU'RE
2:42:22	PROBABLY GOING TO REDUCE THE
2:42:24	PERCENT OF PEOPLE WHO READ IT
2:42:25	AND MAKE IT ACCESSIBLE TO THEM.
2:42:27	ONE OF THE THINGS WE STRUGGLED
2:42:28	WITH OVER TIME IS MAKE SOMETHING
2:42:30	AS SIMPLE AS POSSIBLE SO PEOPLE
2:42:31	CAN UNDERSTAND IT AS WELL AS
2:42:33	GIVING THEM CONTROLS IN LINE IN
2:42:34	THE PRODUCT IN THE CONTEXT OF
2:42:35	WHEN THEY'RE TRYING TO USE THEM.
2:42:37	TAKING INTO ACCOUNT THAT WE
2:42:39	DON'T EXPECT THAT MOST PEOPLE
2:42:40	WILL WANT TO GO THROUGH AND READ
2:42:41	A FULL LEGAL DOCUMENT.
2:42:47	>> SENATOR NELSON.
2:42:50	>> YESTERDAY WHEN WE TALKED I
2:42:52	GAVE THE HARMLESS EXAMPLE THAT
2:42:55	I'M A COMMUNICATING WITH MY
2:42:56	FRIENDS ON FACEBOOK AND INDICATE
2:43:02	THAT I LOVE A CERTAIN KIND OF
2:43:06	CHOCOLATE.
2:43:06	ALL OF A SUDDEN I START
2:43:10	RECEIVING ADVERTISEMENTS FOR
2:43:14	CHOCOLATE.
2:43:14	WHAT IN I DON'T WANT TO RECEIVE
2:43:17	THOSE COMMERCIAL ADVERTISEMENTS?
2:43:22	YOUR CHIEF OPERATING OFFICER,
2:43:27	MS. SANDBURG SUGGESTED ON THE
2:43:29	NBC "TODAY SHOW" THAT FACEBOOK
2:43:32	USERS WHO DO NOT WANT THEIR
2:43:36	PERSONAL INFORMATION USED FOR
2:43:37	ADVERTISING MIGHT HAVE TO PAY
2:43:40	FOR THAT PROTECTION.
2:43:41	PAY FOR IT.
2:43:43	ARE YOU ACTUALLY CONSIDERING
2:43:46	HAVING FACEBOOK USERS PAY FOR
2:43:52	YOU NOT TO USE THAT INFORMATION?
2:43:55	>> SENATOR, PEOPLE HAVE A
2:43:57	CONTROL OVER HOW THEIR
2:43:58	INFORMATION IS USED IN ADS IN
2:44:00	THE PRODUCT TODAY.
2:44:01	IF YOU WANT TO HAVE AN
2:44:03	EXPERIENCE WHERE YOUR ADS AREN'T
2:44:07	TARGETED USING ALL THE
2:44:08	INFORMATION THAT WE HAVE
2:44:09	AVAILABLE, YOU CAN TURN OFF
2:44:11	THIRD PARTY INFORMATION.
2:44:12	WHAT WE FOUND IS THAT EVEN
2:44:14	THOUGH SOME PEOPLE DON'T LIKE
2:44:17	ADS, PEOPLE REALLY DON'T LIKE
2:44:18	ADS THAT AREN'T RELEVANT.
2:44:20	WHILE THERE IS SOME DISCOMFORT,
2:44:23	FOR SURE, WITH USING INFORMATION
2:44:24	IN MAKING ADS MORE RELEVANT.
2:44:29	THE OVERWHELMING FEEDBACK WE GET
2:44:30	FROM OUR COMMUNITY IS PEOPLE
2:44:31	WOULD RATHER HAVE US SHOW
2:44:34	RELEVANT CONTENT THERE THAN NOT.
2:44:36	WE OFFER THIS CONTROL THAT
2:44:38	YOU'RE REFERENCING.
2:44:40	SOME PEOPLE USE IT.
2:44:41	IT'S NOT THE MAJORITY OF PEOPLE
2:44:43	ON FACEBOOK.
2:44:46	I THINK THAT'S A GOOD LEVEL OF
2:44:47	CONTROL TO OFFER.
2:44:49	I THINK WHAT CHERYL WAS SAYING
2:44:50	WAS THAT IN ORDER TO NOT RUN ADS
2:44:52	AT ALL, WE WOULD STILL NEED SOME
2:44:54	SORT OF BUSINESS MODEL.
2:44:55	>> THAT IS YOUR BUSINESS MODEL.
2:44:58	I TAKE IT THAT, AND I USE THE
2:45:03	HARMLESS EXAMPLE OF CHOCOLATE
2:45:04	BUT IF IT GOT INTO MORE PERSONAL
2:45:08	THING.
2:45:08	COMMUNICATING WITH FRIENDS, AND
2:45:09	I WANT TO CUT IT OFF, I'M GOING
2:45:13	TO HAVE TO PAY YOU IN ORDER NOT
2:45:18	TO SEND ME USING MY PERSONAL
2:45:21	INFORMATION SOMETHING THAT I
2:45:24	DON'T WANT.
2:45:25	THAT IS WHAT I UNDERSTOOD MS.
2:45:29	SANDBURG TO SAY.
2:45:30	IS THAT CORRECT?
2:45:31	>> YES.
2:45:31	TO BE CLEAR WE DON'T OFFER AN
2:45:34	OPTION TODAY FOR PEOPLE TO NOT
2:45:35	PAY TO SHOW ADS.
2:45:37	WE THINK OFFERING AN AD
2:45:39	SUPPORTED SERVICE IS MOST
2:45:40	ALIGNED WITH OUR MISSION OF
2:45:41	TRYING TO CONNECT EVERYONE IN
2:45:42	THE WORLD.
2:45:42	WE WANT TO OFFER A FREE SERVICE
2:45:44	THAT EVERYONE CAN AFFORD.
2:45:47	THAT'S THE ONLY WAY WE CAN REACH
2:45:48	BILLIONS OF PEOPLE.
2:45:49	>> YOU CONSIDER MY PERSONALLY
2:45:52	IDENTIFIABLE DATA, THE COMPANY'S
2:45:55	DATA, NOT MY DATA?
2:45:56	IS THAT IT?
2:45:58	>> NO, SENATOR.
2:45:59	THE FIRST LINE OF OUR TERMS OF
2:46:02	SERVICE IS A THEY YOU CONTROL
2:46:03	AND OWN THE INFORMATION AND
2:46:07	CONTENT THAT YOU PUT ON
2:46:08	FACEBOOK.
2:46:10	>> THE RECENT SCANDAL IS
2:46:13	OBVIOUSLY FRUSTRATING.
2:46:15	NOT ONLY BECAUSE IT AFFECTED 87
2:46:17	MILLION BUT BECAUSE IT SEEMS TO
2:46:21	BE PART OF A PATTERN OF LAX DATA
2:46:23	PRACTICES BY THE COMPANY GOING
2:46:25	BACK YEARS.
2:46:26	BACK IN 2011, IT WAS A
2:46:30	SETTLEMENT WITH THE FTC AND NOW
2:46:32	WE DISCOVER YET ANOTHER INSTANCE
2:46:36	WHERE THE DATA WAS FAILED TO BE
2:46:41	PROTECTED.
2:46:41	WHEN YOU DISCOVERED THE
2:46:42	CAMBRIDGE ANALYTICA THAT
2:46:46	FRAUDULENTLY OBTAINED ALL OF
2:46:47	THIS INFORMATION, WHY DIDN'T YOU
2:46:50	INFORM THOSE 87 MILLION?
2:46:55	>> WHEN WE LEARNED IN 2015 THAT
2:46:58	CAMBRIDGE ANALYTICA BOUGHT DATA
2:47:00	FROM AN APP DEVELOPER ON
2:47:02	FACEBOOK THAT PEOPLE SHARED IT
2:47:03	WITH, WE DID TAKE ACTION.
2:47:04	WE TOOK DOWN THE APP AND WE
2:47:06	DEMANDED THAT BOTH THE APP
2:47:08	DEVELOPER AND CAMBRIDGE
2:47:11	ANALYTICA DELETE AND STOP USING
2:47:13	ANY DATA THEY HAD.
2:47:16	THEY TOLD US THEY DID THIS.
2:47:18	IN RETROSPECT IT WAS BAD TO
2:47:22	BELIEVE THEM.
2:47:23	THAT'S NOT A MISTAKE WE WILL
2:47:24	MAKE.
2:47:25	>> YOU DID THAT AND APOLOGIZED
2:47:28	FOR IT.
2:47:30	YOU DIDN'T NOTIFY THEM.
2:47:39	DO YOU THINK YOU HAVE AN ETHICAL
2:47:41	OBLIGATION TO NOTIFY 87 MILLION
2:47:44	FACEBOOK USERS?
2:47:44	>> WHEN WE HEARD BACK FROM
2:47:46	CAMBRIDGE ANALYTICA THAT THEY
2:47:47	TOLD US THEY WEREN'T USING THE
2:47:49	DATA AND DELETED IT.
2:47:51	WE CONSIDERED IT A CLOSED CASE.
2:47:53	THAT WAS CLEARLY A MISTAKE.
2:47:55	WE SHOULDN'T HAVE TAKEN THEIR
2:47:57	WORD FOR IT AND WE UPDATED OUR
2:48:01	POLICIES.
2:48:01	>> DID ANYBODY NOTIFY THE FTC?
2:48:05	>> NO, SENATOR, FOR THE SAME
2:48:06	REASON.
2:48:07	WE CONSIDERED IT A CLOSED CASE.
2:48:10	>> SENATOR.
2:48:10	>> WOULD YOU DO THAT DIFFERENTLY
2:48:13	TODAY, PRESUMELY?
2:48:16	THE END RESPONSE TO SENATOR
2:48:17	NELSON'S QUESTION.
2:48:18	>> YES.
2:48:19	>> THIS MAY BE YOUR FIRST
2:48:21	APPEARANCE BEFORE CONGRESS BUT
2:48:22	IT'S NOT THE FIRST TIME THAT
2:48:23	FACEBOOK HAS FACED TOUGH
2:48:25	QUESTIONS ABOUT ITS PRIVACY
2:48:28	POLICIES.
2:48:29	WIRED MAGAZINE NOTED THAT YOU
2:48:31	HAVE A 14 YEAR HISTORY OF
2:48:33	APOLOGIZING FOR ILL ADVISED
2:48:34	DECISIONS REGARDING USER PRIVACY
2:48:36	NOT UNLIKE THE ONE YOU MADE JUST
2:48:39	NOW IN YOUR OPENING STATEMENT.
2:48:42	AFTER MORE THAN A DECADE OF
2:48:45	PROMISES TO DO BETTER, HOW IS
2:48:48	TODAY'S APOLOGY DIFFERENT AND
2:48:49	WHY SHOULD WE TRUST FACEBOOK TO
2:48:52	MAKE THE NECESSARY CHANGES TO
2:48:53	ENSURE USER PRIVACY AND GIVE
2:48:55	PEOPLE A CLEARER PICTURE OF YOUR
2:48:58	PRIVACY POLICIES?
2:49:02	>> THANK YOU, MR. CHAIRMAN.
2:49:03	WE HAVE MADE A LOT OF MISTAKES
2:49:04	IN RUNNING THE COMPANY.
2:49:07	I THINK IT'S PRETTY MUCH
2:49:08	IMPOSSIBLE TO START A COMPANY IN
2:49:09	YOUR DORM ROOM AND GROW IT TO BE
2:49:15	AT THE SCALE WE'RE AT NOW
2:49:16	WITHOUT MAKING SOME MISTAKES.
2:49:16	BECAUSE OUR SERVICE IS ABOUT
2:49:17	HELPING PEOPLE CONNECT AND
2:49:19	INFORMATION, THOSE MISTAKES HAVE
2:49:21	BEEN DIFFERENT IN HOW -- WE TRY
2:49:23	NOT TO MAKE THE SAME MISTAKE
2:49:25	MULTIPLE TIMES BUT IN GENERAL A
2:49:26	LOT OF THE MISTAKES ARE AROUND
2:49:28	HOW PEOPLE CONNECT TO EACH OTHER
2:49:29	BECAUSE OF THE NATURE OF THE
2:49:31	SERVICE.
2:49:32	OVERALL, I WOULD SAY THAT WE'RE
2:49:35	GOING THROUGH A BROADER
2:49:35	PHILOSOPHICAL SHIFT IN OUR WE
2:49:37	APPROACH OUR RESPONSIBILITY AS A
2:49:38	COMPANY.
2:49:39	FOR THE FIRST 10 OR 12 YEARS OF
2:49:42	THE COMPANY, I VIEWED OUR
2:49:45	RESPONSIBILITY AS BUILDING
2:49:46	TOOLS.
2:49:46	IF WE CAN PUT THOSE TOOLS IN
2:49:48	PEOPLE'S HANDS THEN THAT WOULD
2:49:50	EMPOWER PEOPLE TO DO GOOD
2:49:51	THINGS.
2:49:51	WHAT I THINK WE'VE LEARNED NOW,
2:49:53	ACROSS A NUMBER OF ISSUES, NOT
2:49:54	JUST DATA PRIVACY BUT FAKE NEWS
2:49:58	AND FOREIGN INTERFERENCE, IS WE
2:50:02	NEED TO TAKE AN ACTIVE VIEW.
2:50:09	IT'S NOT ENOUGH TO BUILD TOOLS.
2:50:11	WE NEED TO TAKE A MORE ACTIVE
2:50:15	APPROACH.
2:50:15	MAKING SURE THE MEMBERS ARE
2:50:17	USING THESE TOOLS IN A WAY THAT
2:50:19	WILL IF GOOD AND HEALTHY.
2:50:20	AT THE END OF THE DAY, THIS IS
2:50:22	GOING TO BE SOMETHING WHERE
2:50:24	PEOPLE WILL MEASURE US BY OUR
2:50:25	RESULTS ON THIS.
2:50:26	IT'S NOT THAT I EXPECT ANYTHING
2:50:28	I SAY HERE TODAY TO NECESSARILY
2:50:30	CHANGE PEOPLE'S VIEW.
2:50:31	I'M COMMITTED TO GETTING THIS
2:50:33	RIGHT.
2:50:34	I BELIEVE THAT OVER THE M COING
2:50:39	 -- THE COMING YEARS, PEOPLE
2:50:40	WILL SEE REAL DIFFERENCES.
2:50:42	>> I'M GLAD THAT YOU ALL HAVE
2:50:44	GOTTEN THAT MESSAGE.
2:50:46	AS WE DISCUSSED IN MY OFFICE
2:50:48	YESTERDAY, THE LINE BETWEEN
2:50:52	LEGITIMATE POLITICAL DISCOURSE
2:50:53	AND HATE SPEAK CAN BE HARD TO
2:50:56	IDENTIFY ESPECIALLY WHEN RELYING
2:50:57	ON ARTIFICIAL INTELLIGENCE FOR
2:51:02	THE INITIAL DISCOVERY.
2:51:05	CAN YOU DISCUSS WHAT STEPS
2:51:08	FACEBOOK TAKES AND WHERE YOU MAY
2:51:11	DRAW THE LINE OF WHAT IS AND
2:51:13	WHAT IS NOT HATE SPEECH?
2:51:16	>> YES.
2:51:16	I'LL SPEAK TO HATE SPEECH AND
2:51:18	THEN I'LL TALK ABOUT ENFORCING
2:51:20	OUR CONTENT POLICIES MORE
2:51:24	BROADLY.
2:51:24	MAYBE IF YOU'RE OKAY WITH IT,
2:51:25	I'LL GO IN THE OTHER ORDER.
2:51:27	FROM THE BEGINNING OF THE
2:51:29	COMPANY, IN 2004, I STARTED IT
2:51:32	IN MY DORM ROOM.
2:51:32	IT WAS ME AND MY ROOMMATE.
2:51:36	WE DIDN'T HAVE AI TECHNOLOGY
2:51:37	THAT COULD LOOK AT THE CONTENT
2:51:38	THAT PEOPLE WERE SHARING.
2:51:42	WE HAD TO ENFORCE OUR CONTENT
2:51:45	POLICIES REACTIVELY.
2:51:47	PEOPLE SHOULD SHARE WHAT THEY
2:51:49	WANTED AND IF SOMEONE IN THE
2:51:50	COMMUNITY FOUND IT TO BES OFFIVE
2:51:52	OR AGAINST OUR POLICIES, THEY
2:51:54	WOULD FLAG IT FOR US.
2:51:55	NOW INCREASINGLY, WE'RE
2:51:59	DEVELOPING AI TOOLS THAT CAN
2:52:01	IDENTIFY CERTAIN CLASSES OF BAD
2:52:04	ACTIVITY PROACTIVELY AND FLAG IT
2:52:05	FOR OUR TEAM.
2:52:06	BY THE TEND OF THIS YEAR WE'LL
2:52:08	HAVE MORE THAN 20,000 PEOPLE
2:52:09	WORKING ON SECURITY AND CONTENT
2:52:11	REVIEW WORKING ACROSS ALL THESE
2:52:13	THINGS.
2:52:13	WHEN CONTENT GETS FLAGGED, WE
2:52:15	HAVE THOSE PEOPLE LOOK AT IT AND
2:52:19	IF IT VIOLATES OUR POLICIES THEN
2:52:20	WE TAKE IT DOWN.
2:52:21	SOME PROBLEMS LEND THEMSELVES
2:52:22	MORE EASILY TO AI SOLUTIONS THAN
2:52:25	OTHERS.
2:52:26	HATE SPEECH IS ONE OF THE
2:52:28	HARDEST.
2:52:28	DETERMINING IF SOMETHING IS HATE
2:52:30	SPEECH IS VERY LIGUISTICALLY
2:52:47	NUANCED.
2:52:47	CAN TRUST THAT WITH AN AREA LIKE
2:52:54	TIENDSING TERRORIST PROPAGANDA.
2:52:57	TODAY, 99% OF THE ISIS AND AL
2:52:59	QAEDA CONTENT THAT WE TAKE DOWN
2:53:02	ON FACEBOOK OUR AI SYSTEMS FLAG
2:53:04	BEFORE ANY HUMAN SEES IT.
2:53:06	THAT'S A SUCCESS IN TERMS OF
2:53:07	ROLLING OUT AI TOOLS THAT CAN
2:53:11	PROACTIVELY POLICE AND ENFORCE
2:53:12	SAFETY ACROSS THE COMMUNITY.
2:53:14	HATE SPEECH, I'M OPTIMISTIC THAT
2:53:16	OVER A FIVE TO TEN YEAR PERIOD
2:53:18	WE'LL HAVE AI TOOLS THAT CAN GET
2:53:21	INTO SOME OF THE NUANCES OF
2:53:24	DIFFERENT TYPES OF CONTENT TO BE
2:53:26	MORE ACCURATE IN FLAGGING THINGS
2:53:28	FOR OUR SYSTEMS.
2:53:29	TODAY WE'RE NOT JUST THERE ON
2:53:31	THAT.
2:53:31	A LOT OF THIS IS STILL REACTIVE.
2:53:34	PEOPLE FLAG IT.
2:53:36	WE HAVE PEOPLE LOOK AT IT.
2:53:37	WE HAVE POLICIES TO TRY TO MAKE
2:53:39	IT AS NOT SUBJECTIVE AS
2:53:41	POSSIBLE.
2:53:41	THERE'S A HIGHER ERROR RATE THAN
2:53:43	I'M HAPPY WITH IT.
2:53:44	>> THANKS.
2:53:52	WHAT IS FACEBOOK DOING TO
2:53:55	PREVENT FOREIGN ACTORS FROM
2:53:57	INTERFERING IN U.S. ELECTIONS.
2:53:59	>> THANK YOU, SENATOR.
2:54:00	THIS IS ONE OF MY TOP PRIORITIES
2:54:02	IN 2018 IS TO GET THIS RIGHT.
2:54:04	ONE OF MY GREATEST REGRETS IN
2:54:05	RUNNING THE COMPANY IS WE WERE
2:54:07	SLOW IN IDENTIFYING THE RUSSIAN
2:54:09	INFORMATION OPERATIONS IN 2016.
2:54:11	WE EXPECTED THEM TO DO A NUMBER
2:54:13	OF MORE TRADITIONAL CYBER
2:54:15	ATTACKS WHICH WE DID IDENTIFY
2:54:17	AND NOTIFY THE CAMPAIGNS THAT
2:54:18	THEY WERE TRYING TO HACK INTO
2:54:21	THEM.
2:54:22	WE WERE TRY TO IDENTIFYING THE
2:54:23	NEW INFORMATION OPERATIONS.
2:54:24	>> WHEN DID YOU IDENTIFY NEW
2:54:29	OPERATIONS?
2:54:30	>> RIGHT AROUND THE TIME OF 2016
2:54:32	ELECTION ITSELF.
2:54:32	SINCE THEN, WE -- 2018 IS AN
2:54:36	INCREDIBLY IMPORTANT YEAR FOR
2:54:37	ELECTIONS.
2:54:37	NOT JUST WITH THE U.S. MID TERMS
2:54:39	BUT AROUND THE WORLD THERE'S
2:54:40	IMPORTANT ELECTIONS IN INDIA,
2:54:43	BRAZIL AND MEXICO AND PAKISTAN
2:54:46	AND HUNGARY.
2:54:48	WE WANT TO MAKE SURE WE PROTECT
2:54:51	THE INTEGRITY OF THOSE
2:54:52	ELECTIONS.
2:54:53	SINCE THE 2016 ELECTION THERE'S
2:54:55	BEEN SEVERAL IMPORTANT ELECTIONS
2:54:56	AROUND THE WORLD WHERE WE'VE HAD
2:54:58	THE BETTER RECORD.
2:54:59	THERE'S THE FRENCH ELECTION, THE
2:55:02	GERMAN ELECTION.
2:55:03	>> EXPLAIN WHAT IS BETTER ABOUT
2:55:07	THE RECORD.
2:55:13	>> WE HAVE A NEW AI TOOL THAT
2:55:17	IDENTIFIES FAKE ACCOUNTS.
2:55:20	BETWEEN THOSE THREE ELECTIONS WE
2:55:21	WERE ABLE TO REMOVE TEN OF,000
2:55:28	 -- THOUSANDS OF ACCOUNTS.
2:55:29	THE NATURE OF THESE ATTACKS IS
2:55:33	THERE ARE PEOPLE IN RUSSIA WHOSE
2:55:33	JOB IT IS TO TRY TO EXPLOIT OUR
2:55:36	SYSTEMS AND OTHER INTERNET
2:55:37	SYSTEMS AND OTHER SYSTEMS AS
2:55:38	WELL.
2:55:39	THIS IS AN ARM'S RACE.
2:55:40	THEY GOING TO KEEP ON GETTING
2:55:42	BETTER AT THIS AND WE NEED TO
2:55:43	KEEP ON GETTING BETTER IN THIS
2:55:45	TOO WHICH IS WHY ONE OF THE
2:55:46	THINGS I MENTIONED BEFORE IS
2:55:47	WE'RE GOING TO HAVE MORE THAN
2:55:49	20,000 PEOPLE BY TEND OF THIS
2:55:50	YEAR WORKING ON SECURITY AND
2:55:52	CONTENT REVIEW ACROSS THE
2:55:55	COMPANY.
2:55:56	>> SPEAK FOR A MOMENT ABOUT
2:55:59	AUTOMATED BOTS THAT SPREAD
2:56:01	DISINFORMATION.
2:56:02	WHAT ARE YOU DOING TO PUNISH
2:56:04	THOSE WHO EXPLOIT YOUR PLATFORM
2:56:06	IN THAT REGARD?
2:56:07	>> WELL, YOU'RE NOT ALLOWED TO
2:56:10	HAVE FAKE ACCOUNT ON FACEBOOK.
2:56:11	YOUR CONTENT HAS TO BE
2:56:14	AUTHENTIC.
2:56:14	WE BUILD TECHNICAL TOOLS TO TRY
2:56:16	TO IDENTIFY WHEN PEOPLE ARE
2:56:17	CREATING FAKE ACCOUNTS
2:56:19	ESPECIALLY LARGE NETWORKS OF
2:56:20	FAKE ACCOUNTS LIKE THE RUSSIANS
2:56:22	HAVE IN ORDER TO REMOVE ALL OF
2:56:24	THAT CONTENT.
2:56:25	AFTER THE 2016 ELECTION, OUR TOP
2:56:27	TRY YOURTY WAS PROTECTING THE
2:56:29	INTEGRITY OF OTHER ELECTIONS
2:56:30	AROUND THE WORLD.
2:56:32	AT THE SAME TIME WE HAD A
2:56:33	PARALEGAL EFFORT TO TRACE BACK
2:56:37	TO RUSSIA THE IA ACTIVITY.
2:56:39	THAT WAS PART OF RUSSIAN
2:56:41	GOVERNMENT THAT DID THIS BASIC
2:56:53	 -- ACTIVITY IN 2016.
2:56:54	WE WERE ABLE TO DETERMINE A
2:56:54	NUMBER OF RUSSIAN MEDIA
2:56:55	ORGANIZATIONS WERE OPERATED AND
2:56:56	CONTROLLED BY THIS INTERNET
2:56:57	RESEARCH AGENCY.
2:56:58	WE TOOK THE STEP LAST WEEK.
2:56:59	IT WAS A PRETTY BIG STEP OF
2:57:01	TAKING DOWN SANCTIONED NEWS
2:57:03	ORGANIZATIONS IN RUSSIA AS PART
2:57:04	OF AN OPERATION TO REMOVE 270
2:57:11	FAKE ACCOUNTS AND PAGES, PART OF
2:57:12	THE BROADER NETWORK IN RUSSIA.
2:57:18	IT WAS PRIMARILY TARGETING
2:57:20	SPREADING MISINFORMATION IN
2:57:21	RUSSIA AS WELL AS RUSSIAN
2:57:23	SPEAKING NEIGHBORING COUNTRIES.
2:57:25	>> HOW MANY ACCOUNTS OF THIS
2:57:26	TYPE HAVE YOU TAKEN DOWN?
2:57:29	>> IN THE IRA SPECIFICALLY, THE
2:57:32	ONE WE PEGGED BACK TO THE IRA,
2:57:34	WE CAN IDENTIFY THE 470 IN THE
2:57:36	AMERICAN ELECTIONS AND THE 270
2:57:38	THAT WE SPECIFICALLY WENT AFTER
2:57:40	IN RUSSIA LAST WEEK.
2:57:43	THERE ARE MANY OTHERS THAT OUR
2:57:45	SYSTEMS CATCH WHICH ARE MORE
2:57:46	DIFFICULT TO ATTRIBUTE TO
2:57:48	RUSSIAN INTELLIGENCE.
2:57:55	THE NUMBER WOULD BE ON TENS OF
2:57:58	THOUSANDS.
2:57:59	I'LL BE HAPPY TO HAVE MY TEAM
2:58:00	FOLLOW UP ON THAT.
2:58:01	>> WOULD YOU PLEASE.
2:58:03	IF YOU KNEW IN 2015 THAT
2:58:06	CAMBRIDGE ANALYTICA WAS USING
2:58:09	THE INFORMATION, WHY DIDN'T
2:58:13	FACEBOOK BAN CAMBRIDGE IN 2014?
2:58:18	WHY DID YOU WAIT?
2:58:19	>> THAT'S A GREAT QUESTION.
2:58:23	CAMBRIDGE ANALYTICA WASN'T USING
2:58:24	OUR SERVICES IN 2015.
2:58:26	THIS IS ONE OF THE QUESTIONS I
2:58:28	ASKED OUR TEAM IS WHY DID WE
2:58:30	WAIT UNTIL WE FOUND OUT ABOUT
2:58:32	THE REPORTS LAST MONTH TO BAN
2:58:34	THEM.
2:58:34	AS OF THE TIME WLERNED ABOUT
2:58:36	THEIR ACTIVITY IN 2015, THEY
2:58:42	WEREN'T RUNNING PAGES.
2:58:43	WE HAD NOTHING TO BAN.
2:58:44	>> THANK YOU.
2:58:45	>> THANK YOU, SENATOR.
2:58:49	SENATOR HATCH.
2:58:55	>> THIS IS THE MOST INTENSE
2:58:59	PUBLIC RELATED HEARING FOR A
2:59:02	TECH OPERATION.
2:59:03	THE RECENT STORIES ABOUT
2:59:05	CAMBRIDGE ANALYTICA AND DATA
2:59:07	MINING ON SOCIAL MEDIA HAVE
2:59:10	RAISED CONCERNS ABOUT CONSUMER
2:59:12	PRIVACY.
2:59:14	I KNOW YOU UNDERSTAND THAT.
2:59:14	THESE STORIES TOUCH ON THE
2:59:15	FOUNDATION OF THE INTERNET
2:59:17	ECONOMY AND THE WAY THE WEBSITES
2:59:20	THAT DRIVE OUR INTERNET ECONOMY
2:59:23	MAKE MONEY.
2:59:25	SOME HAVE PROFESSED THEMSELVES
2:59:28	SHOCKED, SHOCKED THAT COMPANIES
2:59:29	LIKE FACEBOOK AND GOOGLE SHARE
2:59:32	DATA WITH ADVERTISERS.
2:59:35	DID ANY OF THESE INDIVIDUALS
2:59:35	STOP TO ASK WHY FACEBOOK AND
2:59:38	GOOGLE DON'T CHARGE FOR ACCESS.
2:59:42	NOTHING IN LIFE IS FREE.
2:59:43	EVERYTHING INVOLVES TRADE OFF.
2:59:45	IF YOU WANT SOMETHING WITHOUT
2:59:47	HAVING TO PAY MONEY, YOU'LL HAVE
2:59:48	TO PAY FOR IT IN SOME OTHER WAY,
2:59:49	IT SEEMS TO ME.
2:59:51	THAT'S WHAT WE'RE SEEING HERE.
2:59:52	THESE GREAT WEBSITES THAT DON'T
2:59:53	CHARGE FOR ACCESS, THEY EXTRACT
2:59:56	VALUE IN SOME OTHER WAY.
2:59:58	THERE'S NOTHING WRONG WITH THAT
2:59:59	AS LONG AS THEY ARE UP FRONT
3:00:02	ABOUT WHAT THEY'RE DOING.
3:00:03	IN MY MIND THE ISSUE HERE IS
3:00:05	TRANSPARENCY.
3:00:06	IT'S CONSUMER CHOICE.
3:00:08	DO USERS UNDERSTAND WHAT THEY'RE
3:00:09	AGREEING TO WHEN THEY ACCESS A
3:00:12	WEBSITE OR AGREE TO TERMS OF
3:00:15	SERVICE.
3:00:15	ARE WEBSITES UP FRONT ABOUT HOW
3:00:18	THEY EXTRACT VALUE FROM USERS OR
3:00:20	DO THEY HIDE THE BALL.
3:00:21	THE CONSUMERS HAVE THE
3:00:22	INFORMATION THEY NEED TO MAKE AN
3:00:24	INFORMED CHOICE REGARDING
3:00:25	WHETHER OR NOT TO VISIT A
3:00:28	PARTICULAR WEBSITE.
3:00:29	TO MY MIND THESE ARE QUESTIONS
3:00:30	THAT WE SHOULD ASK OR BE
3:00:37	FOCUSING ON.
3:00:38	I REMEMBER YOUR FIRST VISIT TO
3:00:41	CAPITOL HILL IN 2010.
3:00:43	YOU SPOKE TO THE TASK FORCE,
3:00:44	WHICH I CHAIR.
3:00:45	YOU SAID THAT FACEBOOK WOULD
3:00:47	ALWAYS BE FREE.
3:00:48	IS THAT STILL YOUR OBJECTIVE?
3:00:51	>> SENATOR, YES.
3:00:53	THERE WILL ALWAYS BE A VERSION
3:00:56	OF FACEBOOK THAT IS FREE.
3:00:57	IT'S OUR MISSION TO TRY TO HELP
3:01:00	CONNECT EVERYONE AROUND THE
3:01:03	WORLD.
3:01:04	WE BELIEVE WE NEED TO OFFER A
3:01:06	SERVICE THAT EVERYONE CAN
3:01:08	AFFORD.
3:01:09	>> HOW DO YOU SUSTAIN A BUSINESS
3:01:10	MODEL IN WHICH USERS DON'T PAY
3:01:11	FOR YOUR SERVICE?
3:01:13	>> SENATOR, WE RUN ADS.
3:01:16	>> I SEE.
3:01:18	THAT'S GREAT.
3:01:19	WHEN EVER A CONTROVERSY LIKE
3:01:19	THIS ARISES THERE'S A DANGER
3:01:22	THAT CONGRESS'S RESPONSE WILL BE
3:01:25	TO STEP IN AND OVERREGULATE.
3:01:26	THAT'S BEEN THE EXPERIENCE THAT
3:01:27	I'VE HAD IN MY 42 YEARS HERE.
3:01:30	IF YOUR VIEW, WHAT SORTS OF
3:01:32	LEGISLATIVE CHANGES WOULD HELP
3:01:33	TO SOLVE THE PROBLEMS THE
3:01:36	CAMBRIDGE ANALYTICA STORY HAS
3:01:37	REVEALED AND WHAT SORTS OF
3:01:38	LEGISLATIVE CHANGES WOULD NOT
3:01:41	HELP TO SOLVE THIS ISSUE?
3:01:43	>> SENATOR, I THINK THERE ARE A
3:01:44	FEW CATEGORIES OF LEGISLATION
3:01:48	THAT MAKES SENSE TO CONSIDER.
3:01:50	AROUND PRIVACY SPECIFICALLY,
3:01:54	THERE ARE FEW PRINCIPLES THAT
3:01:56	WOULD BE USEFUL TO DISCUSS AND
3:01:59	CODIFY INTO LAW.
3:02:01	ONE IS AROUND HAVING A SIMPLE
3:02:04	AND PRACTICAL SET OF WAYS THAT
3:02:06	YOU EXPLAIN WHAT YOU'RE DOING
3:02:09	WITH DATA.
3:02:09	WE TALKED A BIT EARLIER AROUND
3:02:12	THE COMPLEXITY OF LAYING OUT
3:02:14	THIS LONG PRIVACY POLICY.
3:02:15	IT'S HARD TO SAY THAT PEOPLE
3:02:17	FULLY UNDERSTAND SOMETHING WHEN
3:02:18	IT'S ONLY WRITTEN OUT IN A LONG
3:02:20	LEGAL DOCUMENT.
3:02:21	THE STUFF NEEDS TO BE
3:02:22	IMPLEMENTED IN A WAY WHERE
3:02:23	PEOPLE CAN UNDERSTAND IT.
3:02:25	WHERE CONSUMERS CAN UNDERSTAND
3:02:28	IT.
3:02:28	THAT CAN ALSO CAPTURE THE
3:02:31	NUANCES OF HOW THE SERVICES WORK
3:02:33	THAT'S NOT OVERLY RESTRICTED ON
3:02:35	PROVIDING THE SERVICES.
3:02:36	THAT'S ONE.
3:02:38	THE SECOND IS AROUND GIVING
3:02:40	PEOPLE COMPLETE CONTROL.
3:02:41	THIS IS THE MOST IMPORTANT
3:02:48	PRINCIPLE FOR FACEBOOK.
3:02:49	EVERY PIECE OF CONTENT YOU OWN
3:02:50	AND YOU HAVE COMPLETE CONTROL
3:02:51	OVER WHO SEE S IT AND HOW YOU
3:02:54	SHARE IT.
3:02:55	YOU CAN REMOVE IT AT ANY TIME.
3:02:56	THAT'S WHY EVERY DAY ABOUT A
3:02:57	HUNDRED BILLION TIMES DAY,
3:03:04	PEOPLE COMES TO ONE OF OUR
3:03:05	SERVICES AND POST A PHOTO.
3:03:06	THEY KNOW THEY HAVE THAT CONTROL
3:03:08	AND WHO THEY SAY IT WILL GO TO
3:03:12	IS WHO SEES THE CONTENT.
3:03:14	THAT'S IMPORTANT OPINION THAT
3:03:15	SHOULD APPLY TO EVERY SERVICE.
3:03:24	THE THIRD IS AROUND ENABLING
3:03:26	INNOVATION.
3:03:27	SOME OF THESE ARE SENSITIVE LIKE
3:03:28	FACE RECOGNITION.
3:03:31	I THINK THERE'S A BALANCE THAT'S
3:03:33	EXTREMELY IMPORTANT TO STRIKE
3:03:34	HERE WHERE YOU OBTAIN SPECIAL
3:03:37	CONSENT FOR FEATURES LIKE FACE
3:03:40	RECOGNITION BUT WE STILL NEED TO
3:03:41	MAKE IT SO THAT AMERICAN
3:03:42	COMPANIES CAN INNOVATE IN THOSE
3:03:44	AREAS OR ELSE WE'RE GOING TO
3:03:45	FALL BEHIND CHINESE COMPETITORS
3:03:47	AND OTHERS AROUND THE WORLD WHO
3:03:49	HAVE DIFFERENT REGIMES FOR
3:03:52	DIFFERENT NEW FEATURES LIKE
3:03:55	THAT.
3:03:56	>> SENATOR CANTWELL.
3:03:59	>> THANK YOU.
3:03:59	DO YOU KNOW WHO PALANTIR IS?
3:04:03	>> I DO.
3:04:06	>> SOME PEOPLE HAVE REFERRED TO
3:04:08	THEM AS STANFORD ANALYTICA.
3:04:12	DO YOU AGREE?
3:04:14	>> I HAVE NOT HEARD THAT.
3:04:17	>> DO YOU THINK PALANTIR TAUGHT
3:04:22	CAMBRIDGE ANALYTICA PRESS
3:04:22	REPORTS ARE SAYING HOW TO DO
3:04:23	THESE TACTICS?
3:04:25	>> SENATOR, I DON'T KNOW.
3:04:28	>> DO YOU THINK THAT PALANTIR
3:04:31	HAS EVER SCRAPPED DATA FROM
3:04:33	FACEBOOK?
3:04:33	>> I'M NOT AWARE OF THAT.
3:04:38	>> OKAY.
3:04:39	DO YOU THINK THAT DURING THE
3:04:44	2016 CAMPAIGN AS CAMBRIDGE
3:04:46	ANALYTICA WAS PROVIDING SUPPORT
3:04:48	TO THE TRUMP CAMPAIGN UNDER
3:04:50	PROJECT ALAMO, WERE THERE ANY
3:04:52	FACEBOOK PEOPLE INVOLVED IN THAT
3:04:53	SHARING OF TECHNIQUE AND
3:04:56	INFORMATION?
3:04:57	>> SENATOR, WE PROVIDED SUPPORT
3:05:00	TO THE TRUMP CAMPAIGN SIMILAR TO
3:05:01	WHAT WE PROVIDE TO ANY
3:05:04	ADVERTISER OR CAMPAIGN WHO ASKS
3:05:07	FOR IT.
3:05:08	>> THAT WAS A YES?
3:05:09	IS THAT A YES?
3:05:11	>> SENATOR, CAN YOU REPEAT THE
3:05:13	SPECIFIC QUESTION.
3:05:13	I WANT TO MAKE SURE I GET
3:05:15	SPECIFICALLY WHAT YOU'RE ASKING.
3:05:19	>> DURING THE 2016 CAMPAIGN, CAM
3:05:20	BRIDGE ANALYTICA WORKED WITH THE
3:05:22	TRUMP CAMPAIGN TO REFINE TACTICS
3:05:24	AND WERE FACEBOOK EMPLOYEES
3:05:26	INVOLVED IN THAT?
3:05:27	>> SENATOR, I DON'T KNOW THAT
3:05:28	OUR EMPLOYEES WERE INVOLVED WITH
3:05:33	CAMBRIDGE ANALYTICA.
3:05:34	I KNOW WE DID HELP OUT THE TRUMP
3:05:36	CAMPAIGN WITH SALES SUPPORT THE
3:05:38	SAME OTHER WAY WE DO WITH OTHER
3:05:41	CAMPAIGNS.
3:05:42	>> THEY MAY HAVE BEEN INVOLVED.
3:05:43	MAYBE THAT'S SOMETHING YOUR
3:05:44	INVESTIGATION WILL FIND OUT.
3:05:45	>> I CAN HAVE MY TEAM GET BACK
3:05:47	TO YOU ON ANY SPECIFICS THERE
3:05:49	THAT I DON'T KNOW SITTING HERE
3:05:50	TODAY.
3:05:50	>> HAVE YOU HEARD OF TOTAL
3:05:53	INFORMATION AWARENESS?
3:05:54	DO YOU KNOW WHAT I'M TALKING
3:05:55	ABOUT?
3:05:57	>> NO, I DO NOT.
3:05:57	>> TOTAL INFORMATION AWARENESS
3:06:01	WAS 2003.
3:06:03	JOHN ASHCROFT AND OTHERS TRYING
3:06:06	TO DO SIMILAR THINGS TO WHAT I
3:06:08	THINK IS BEHIND ALL OF THIS.
3:06:11	GEOPOLITICAL FORCES TRYING TO
3:06:12	GET DATA AND INFORMATION TO
3:06:14	INFLUENCE A PROCESS.
3:06:15	WHEN I LOOK AT PALANTIR AND WHAT
3:06:17	THEY'RE DOING AND I LOOK AT
3:06:20	WHAT'S APP WHICH IS ANOTHER
3:06:26	ACQUISITION AND I LOOK AT WHERE
3:06:30	YOU ARE FROM THE 2011 DESENT
3:06:32	DECREE AND WHERE YOU ARE TODAY
3:06:35	I'M THINKING IS THIS GUY OUT
3:06:37	FOXING FOXES OR IS HE GOING
3:06:38	ALONG WITH WHAT IS A MAJOR TREND
3:06:42	TO TRY TO HARVEST INFORMATION
3:06:44	FOR POLITICAL FORCES.
3:06:45	MY QUESTION TO YOU IS DO YOU SEE
3:06:48	THAT THOSE APPLICATIONS, THAT
3:06:51	THOSE COMPANIES PALANTIR AND
3:06:53	EVEN WHAT'S APP ARE GOING TO
3:06:54	FALL INTO THE SAME SITUATION
3:06:56	THAT YOU'VE JUST FALLEN INTO
3:06:57	OVER THE LAST SEVERAL YEARS?
3:07:00	>> SENATOR, I'M NOT SURE
3:07:05	SPECIFICALLY.
3:07:06	OVERALL, I DO THINK THAT THESE
3:07:09	ISSUES AROUND INFORMATION ACCESS
3:07:10	ARE CHALLENGING.
3:07:13	TO THE SPECIFICS ABOUT THOSE
3:07:15	APPS, I'M NOT FAMILIAR WITH WHAT
3:07:18	PALANTIR IS.
3:07:19	WHAT'S APP COLLECTS VERY LITTLE
3:07:23	INFORMATION.
3:07:23	I THINK IS LESS LIKELY TO HAVE
3:07:24	THE KIND OF ISSUES BECAUSE OF
3:07:25	THE WAY THE SERVICES
3:07:28	ARCHITECTED.
3:07:28	I THINK THESE ARE BROAD ISSUES
3:07:30	ACROSS THE TECH INDUSTRY.
3:07:32	>> I GUESS GIVEN THE TRACK
3:07:34	RECORD WHERE FACEBOOK IS AND WHY
3:07:36	YOU'RE HERE TODAY, I GUESS
3:07:37	PEOPLE WOULD SAY THEY DIDN'T ACT
3:07:41	BOLDLY ENOUGH AND THE FACT THAT
3:07:45	P PEOPLE LIKE JOHN BOLTON WAS AN
3:07:57	INVESTOR AND IT WAS LAST MONTH
3:07:59	THAT THE BOLTON PACT WAS UPSET
3:08:02	HOW THE AMERICANS WERE BECOMING
3:08:05	LIMP WRISTED.
3:08:07	THE FACT THAT THERE ARE A LOT OF
3:08:10	PEOPLE WHO HAVE INTERESTED IN
3:08:12	THIS LARGER EFFORT AND WHAT I
3:08:14	THINK MY CONSTITUENTS WANT TO
3:08:18	KNOW IS WAS THIS DISCUSSED AT
3:08:19	YOUR BOARD MEETINGS AND WHAT ARE
3:08:21	THE APPLICATIONS AND INTEREST
3:08:24	THAT ARE BEING DISCUSSED WITHOUT
3:08:26	PUTTING REAL TEETH INTO THIS.
3:08:28	WE DON'T WANT TO COME BACK TO
3:08:30	THIS SITUATION AGAIN.
3:08:32	I BELIEVE YOU HAVE ALL TALENT.
3:08:34	MY QUESTION IS DO YOU HAVE ALL
3:08:36	THE WILL TO HELP US SOLVE THIS
3:08:38	PROBLEM?
3:08:39	>> YES, SENATOR.
3:08:40	DATA PRIVACY AND FOREIGN
3:08:46	INTERFERENCE ARE TOPICS WE
3:08:47	DISCUSSED AT THE BOARD MEETING.
3:08:47	THESE ARE SOME OF THE ISSUES WE
3:08:50	DISCUSSED AT THE BOARD MEETING.
3:08:52	WE FEEL A HUGE RESPONSIBILITY TO
3:08:53	GET THIS RIGHT.
3:08:54	>> DO YOU BELIEVE THE EUROPEAN
3:08:55	REGULATION SHOULD BE APPLIED
3:08:57	HERE IN THE U.S. IN.
3:08:58	>> I THINK EVERY ONE IN THE
3:08:59	WORLD DESERVES GOOD PRIVACY
3:09:03	PROTECTION.
3:09:03	REGARDLESS OF WHETHER WE
3:09:05	IMPLEMENT THE EXACT SAME
3:09:07	REGULATION, I WOULD GUESS THAT
3:09:08	IT WOULD BE DIFFERENT BECAUSE WE
3:09:10	HAVE DIFFERENT SENSIBILITIES IN
3:09:11	THE U.S. AS TO OTHER COUNTRIES.
3:09:16	WE'RE COMMITTED TO ROLLING OUT
3:09:19	THE CONTROLS AND AFFIRMATIVE
3:09:22	CONSENT AND THE SPECIAL CONTROLS
3:09:25	AROUND SENSITIVE TYPES OF
3:09:27	TECHNOLOGY LIKE FACE RECOGNITION
3:09:28	THAT ARE REQUIRED IN GDPR.
3:09:31	WE'RE DOING THAT AROUND THE
3:09:32	WORLD.
3:09:32	I THINK IT'S CERTAINLY WORTH
3:09:34	DISCUSSING WHETHER WE SHOULD
3:09:36	HAVE SOMETHING SIMILAR IN THE
3:09:38	U.S. BUT WHAT I WOULD LIKE TO
3:09:39	SAY TODAY IS WE'RE GOING TO GO
3:09:41	FORWARD AN IMPLEMENT THAT
3:09:42	REGARDLESS OF WHAT THE
3:09:43	REGULATORY OUTCOME IS.
3:09:55	>> SENATOR.
3:09:56	>> THANK YOU.
3:09:58	MY QUESTION WILL BE A FOLLOW UP
3:09:59	ON WHAT SENATOR HATCH WAS
3:10:00	TALKING ABOUT AND LET ME AGREE
3:10:04	WITH BASICALLY HIS ADVICE THAT
3:10:06	WE DON'T WANT TO OVERREGULATE TO
3:10:10	THE POINT WHERE WE'RE STIFLING
3:10:12	INNOVATION AND INVESTMENT.
3:10:15	I UNDERSTAND WITH REGARD TO
3:10:18	SUGGESTED RULES OR SUGGESTED
3:10:21	LEGISLATION THERE ARE TWO
3:10:23	SCHOOLS OF THOUGHT OUT THERE.
3:10:25	ONE WOULD BE THE ISP, THE
3:10:28	INTERNET SERVICE PROVIDERS WHO
3:10:31	ARE ADVOCATING FOR PRIVACY
3:10:33	PROTECTIONS FOR CONSUMERS THAT
3:10:34	APPLY TO ALL ONLINE ENTITIES
3:10:38	EQUALLY ACROSS THE ENTIRE
3:10:40	INTERNET ECOSYSTEM.
3:10:49	FACEBOOK IS AN EDGE PROVIDER.
3:10:51	EDGE PROVIDERS MAY NOT SUPPORT
3:10:54	THAT EFFORT BECAUSE THEY HAVE
3:10:56	DIFFERENT BUSINESS MODELS THAN
3:10:57	THE ISPs AND SHOULD NOT BE
3:10:59	CONSIDERED LIKE SERVICES.
3:11:00	DO YOU THINK WE NEED CONSISTENT
3:11:03	PRIVACY PROTECTIONS FOR CONSUME
3:11:07	S ACROSS THE ENTIRE INTERNET
3:11:09	ECOSYSTEM THAT ARE BASED ON THE
3:11:11	TYPE OF CONSUME EVERY
3:11:12	INFORMATION BEING COLLECTED,
3:11:13	USED OR SHARED REGARDLESS OF THE
3:11:16	ENTITY DOING THE COLLECTING OR
3:11:18	USING OR SHARING?
3:11:19	>> SENATOR, THIS IS AN IMPORTANT
3:11:22	QUESTION.
3:11:23	I WOULD DIFFERENTIATE BETWEEN
3:11:27	ISPs WHICH I CONSIDER TO BE THE
3:11:28	PIPES OF THE INTERNET AND THE
3:11:31	PLATFORMS LIKE GOOGLE OR
3:11:32	FACEBOOK OR TWITTER OR YOUTUBE
3:11:33	THAT ARE THE APPS OR PLATFORMS
3:11:35	ON TOP OF THAT.
3:11:36	I THINK IN GENERAL THE
3:11:38	EXPECTATIONS THAT PEOPLE HAVE OF
3:11:40	THE PIPES ARE SOMEWHAT DIFFERENT
3:11:42	FROM THE PLATFORMS.
3:11:43	THERE MIGHT BE AREAS WHERE THERE
3:11:44	NEEDS TO BE MORE REGULATION IN
3:11:46	ONE AND LESS IN THE OTHER.
3:11:49	I THINK THERE WILL BE OTHER
3:11:52	PLACES WHERE THERE NEEDS TO BE
3:11:54	MORE REGULATION OF THE OTHER
3:11:55	TYPE.
3:11:55	ON THE PIPES, ONE OF THE
3:11:58	IMPORTANT ISSUES THAT I THINK WE
3:12:00	FACE AND HAVE DEBATED IS --
3:12:02	>> WHEN YOU SAY PIPES?
3:12:04	>> ISPs.
3:12:07	I KNOW NET NEUTRALITY HAS BEEN A
3:12:09	HOTLY DEBATED TOPIC AND ONE OF
3:12:11	THE REASONS I'VE BEEN OUT THERE
3:12:14	SAYING I THINK THAT SHOULD BE
3:12:14	THE CASE IS BECAUSE I LOOK AT MY
3:12:16	OWN STORY OF WHEN I WAS GETTING
3:12:18	STARTED BUILDING FACEBOOK AT
3:12:21	HARVARD, I ONLY HAD ONE OPTION
3:12:22	FOR AN ISP TO USE.
3:12:24	IF I HAD TO PAY EXTRA IN ORDER
3:12:27	TO MAKE IT SO MY APP COULD BE
3:12:29	SEEN OR USED BY OTHER PEOPLE,
3:12:32	THEN WE PROBABLY WOULDN'T BE
3:12:33	HERE TODAY.
3:12:33	>> WE'RE TALKING ABOUT PRIVACY
3:12:36	CONCERNS.
3:12:36	LET ME JUST SAY WE'LL HAVE TO
3:12:37	FOLLOW UP ON THIS, BUT I THINK
3:12:39	YOU AND I AGREE THIS IS GOING TO
3:12:41	BE ONE OF THE MAJOR ITEMS OF
3:12:45	DEBATE IF WE HAVE TO GO FORWARD
3:12:47	AND DO THIS FROM A GOVERNMENTAL
3:12:50	STAND POINT.
3:12:50	LET ME MOVE ONTO ANOTHER COUPLE
3:12:52	OF ITEMS.
3:12:53	IS IT TRUE THAT THAT FACEBOOK
3:12:59	COLLECTS THE CALL AND TEXT
3:13:01	HISTORIES OF ITS USERS THAT USE
3:13:07	ANDROID PHONES?
3:13:08	>> WE HAVE AN APP CALLED
3:13:12	MESSENGER AND THAT APP OFFERS
3:13:14	PEOPLE AN OPTION TO SYNC THEIR
3:13:18	TEXT MESSAGES INTO THE MESSAGING
3:13:25	APP SO YOU CAN HAVE YOUR TEXTS
3:13:27	AND FACEBOOK MESSAGES IN ONE
3:13:30	PLACE.
3:13:30	WE ALSO ALLOW PEOPLE THE OPTION
3:13:32	OF --
3:13:32	>> YOU CAN OPT IN OR OUT OF
3:13:34	THAT?
3:13:34	>> YES.
3:13:35	IT'S OPT IN.
3:13:37	YOU HAVE TO AFFIRMATIVELY SAY
3:13:39	THAT YOU WANT TO SYNC THAT
3:13:44	INFORMATION BEFORE WE GET
3:13:46	ACCESS.
3:13:46	>> UNLESS YOU OPT IN, YOU DON'T
3:13:49	COLLECT THAT INFORMATION IN.
3:13:50	>> THAT'S CORRECT.
3:13:50	>> IS THERE PRACTICE DONE AT ALL
3:13:52	WITH MINORS OR DO YOU MAKE AN
3:13:54	EXCEPTION FOR PERSONS AGE 13 TO
3:13:57	17?
3:13:57	>> I DO NOT KNOW.
3:13:59	WE CAN FOLLOW UP.
3:14:01	>> ONE OTHER THING.
3:14:02	THERE'S BEEN REPORTS THAT
3:14:04	FACEBOOK WITH TRACK USERS
3:14:05	INTERNET BROWSING ACTIVITY EVEN
3:14:08	AFTER THAT USER ARE HAS LOGGED
3:14:10	OFF OF THE FACEBOOK PLATFORM.
3:14:13	CAN YOU CONFIRM WHETHER OR NOT
3:14:15	THIS IS TRUE?
3:14:19	>> SENATOR, I WANT TO MAKE SURE
3:14:20	I GET THIS ACCURATE SO PROBABLY
3:14:22	BE BETTER TO HAVE MY FAMILY
3:14:24	FOLLOW UP.
3:14:25	>> YOU DON'T KNOW?
3:14:26	>> I KNOW THAT PEOPLE USE
3:14:28	COOKIES ON THE INTERNET AND YOU
3:14:30	CAN PROBABLY CORRELATE ACTIVITY
3:14:34	BETWEEN SESSIONS.
3:14:35	WE DO THAT FOR A NUMBER OF
3:14:37	REASONS, INCLUDING SECURITY AND
3:14:40	INCLUDING MEASURING ADS TO MAKE
3:14:42	SURE THAT THE ADD EXPERIENCES
3:14:44	ARE MOST EFFECTIVE WHICH PEOPLE
3:14:45	CAN OPT OUT OF.
3:14:47	I WANT TO MAKE SURE I'M PRECISE?
3:14:49	MY ANSWER.
3:14:49	>> WHEN YOU GET BACK TO ME, SIR,
3:14:51	WOULD YOU ALSO LET US KNOW HOW
3:14:54	FACEBOOK DISCLOSES TO ITS USERS
3:14:59	THAT ENGAGING IN THIS TYPE OF
3:15:01	TRACKING GIVES US THAT RESULT.
3:15:05	>> THANK YOU VERY MUCH.
3:15:08	>> THANK YOU, SENATOR.
3:15:12	>> I ASSUME FACEBOOK'S BEEN
3:15:16	SERVED SUBPOENAS FROM THE
3:15:25	SPECIAL COUNSEL MUELLER'S
3:15:26	OFFICE, IS THAT CORRECT?
3:15:29	>> YES.
3:15:29	>> HAVE YOU OR ANYONE AT
3:15:30	FACEBOOK BEEN INTERVIEWED?
3:15:32	>> YES.
3:15:32	>> HAVE YOU BEEN INTERVIEWED?
3:15:34	>> I HAVE NOT.
3:15:35	I HAVE NOT.
3:15:36	>> OTHERS HAVE IN.
3:15:37	>> I BELIEVE SO.
3:15:37	I WANT TO BE CAREFUL HERE
3:15:41	BECAUSE THAT -- OR WORK WITH THE
3:15:43	SPECIAL COUNSEL IS CONFIDENTIAL
3:15:45	AND I WANT TO MAKE SURE THAT IN
3:15:46	AN OPEN SESSION I'M NOT
3:15:49	REVEALING SOMETHING THAT'S
3:15:51	CONFIDENTIAL.
3:15:51	>> I UNDERSTAND.
3:15:52	I WANT TO MAKE CLEAR YOU HAVE
3:15:53	BEEN CONTACTED AND HAVE HAD
3:15:56	SUBPOENAS?
3:15:56	>> LET ME CLARIFY THAT.
3:15:58	I'M NOT AWARE OF A SUBPOENA.
3:15:59	I BELIEVE THERE MAY BE BUT I
3:16:01	KNOW WE'RE WORKING WITH THEM.
3:16:06	>> THANK YOU.
3:16:08	SIX MONTHS AGO GENERAL COUNSEL
3:16:10	PROMISED YOU WERE TAKING STEPS
3:16:19	TO PREVENT UNWITTING
3:16:21	CO-CONSPIRATOR BUT THESE
3:16:26	UNVERIIED DIVISIVE PAGES ARE ON
3:16:30	FACEBOOK TODAY.
3:16:30	THEY LOOK A LOT LIKE THE RUSSIAN
3:16:33	GROUPS USED TO SPREAD PROPAGANDA
3:16:36	DURING THE 2016 ELECTION.
3:16:38	ARE YOU ABLE TO CONFIRM WHETHER
3:16:39	THEY ARE RUSSIAN CREATED GROUPS,
3:16:42	YES OR NO?
3:16:43	>> SENATOR, YOU ASKING ABOUT
3:16:46	THOSE SPECIFICALLY?
3:16:47	>> YES.
3:16:49	>> SENATOR, LAST WEEK WE
3:16:51	ANNOUNCD MAJOR CHANGE TO OUR
3:16:53	ADS AND PAGES POLICIES THAT WE
3:16:54	WILL BE VERIFYING THE IDENTITY
3:16:57	OF EVERY SINGLE ADVERTISER --
3:16:59	>> SPECIFIC ONES.
3:17:01	DO YOU KNOW WHETHER THEY ARE?
3:17:02	>> I'M NOT FAMILIAR WITH THOSE
3:17:03	PIECES OF CONTENT SPECIFICALLY.
3:17:07	>> IF YOU DID THIS POLICY OVER A
3:17:08	WEEK AGO, YOU'D BE ABLE TO
3:17:10	VERIFY THEM IN.
3:17:11	>> WE ARE WORKING ON THAT NOW.
3:17:13	WHAT WE'RE DOING IS WE'RE GOING
3:17:14	TO VERIFY THE IDENTITY OF ANY
3:17:17	ADVERTISER WHO IS RUNNING A
3:17:20	POLITICAL OR ISSUE RELATED AD.
3:17:22	THIS IS BASICALLY WHAT THE
3:17:24	HONEST ADS ACT IS PROPOSING AND
3:17:26	WE'RE FOLLOWING THAT.
3:17:29	WE'RE ALSO GOING TO DO THAT FOR
3:17:32	PAGES.
3:17:32	>> YOU CAN'T ANSWER ON THESE?
3:17:35	>> I'M NOT FAMILIAR.
3:17:36	>> WILL YOU FIND OUT THE ANSWER
3:17:37	AND GET BACK TO ME?
3:17:39	>> I'LL HAVE MY TEAM GET BACK TO
3:17:41	YOU.
3:17:41	I THINK IT'S WORTH ADDING THAT
3:17:43	WE'RE GOING TO DO THE SAME
3:17:45	VERIFICATION OF THE IDENTITY AND
3:17:49	LOCATION OF A MINS WHO ARE
3:17:53	RUNNING LARGE PAGES.
3:17:55	EVEN IF THEY AREN'T BUYING ADS,
3:17:58	THAT WILL MAKE IT HARDER FOR
3:18:01	RUSSIAN INTERFERENCE EFFORTS OR
3:18:05	OTHER UNAUTHENTIC EFFORT.
3:18:07	>> SOME MIGHT SAY IT'S ABOUT
3:18:09	TIME.
3:18:09	SIX MONTHS AGO I ASKED GENERAL
3:18:13	COUNSEL ABOUT FACEBOOK IS A
3:18:15	BREEDING GROUND FOR HATE SPEECH
3:18:17	AGAINST ROHINYJA REFUGEES.
3:18:29	YOU SAY YOU USE AI TO FIND THIS.
3:18:35	THIS IS THE TYPE OF CONTENT I'M
3:18:37	REFERRING TO.
3:18:38	IT'S CALLS FOR THE DEATH OF A
3:18:40	MUSLIM JOURNALIST.
3:18:42	THAT THREAT WENT STRAIGHT
3:18:44	THROUGH YOUR DETECTION SYSTEM.
3:18:46	IT SPREAD QUICKLY.
3:18:52	IT TOOK ATTEMPT AFTER ATTEMPT TO
3:18:53	GET YOU TO REMOVE IT.
3:19:00	WHY COULDN'T IT BE REMOVED
3:19:02	WITHIN 24 HOURS.
3:19:04	>> WHAT'S HAPPENING IN MYANMAR
3:19:07	IS A TERRIBLE TRAGEDY.
3:19:09	>> WE ALL AGREE WITH THAT.
3:19:11	>> YOU AND INVESTIGATORS HAVE
3:19:13	BLAMED -- YOU BLAME FACEBOOK FOR
3:19:15	PLAYING A ROLE IN THAT GENERAL
3:19:17	VISE.
3:19:17	WE ALL AGREE SOCIAL SECURITY
3:19:21	TERRIBLE.
3:19:25	HOW CAN YOU DEDICATE RESOURCES
3:19:27	TO MAKE SURE SUCH HATE SPEECH IS
3:19:30	TAKING DOWN IN 24 HOURS.
3:19:31	>> WE'RE WORKING ON THIS.
3:19:33	THERE'S THREE SPECIFIC THINGS
3:19:34	WE'RE DOING.
3:19:37	WE'RE HIRING DOZENS MORE BURMESE
3:19:42	LANGUAGE CONTENT USERS.
3:19:44	IT'S HARD TO DO IT WITHOUT
3:19:45	PEOPLE WHO SPEAK THE LANGUAGE.
3:19:56	 WE'RE WORKING WITH SPECIFICS TO
3:19:57	TAKE DOWN THEIR ACCOUNT.
3:19:59	THIRD, IS WE'RE STANDING THE UP
3:20:00	A PRODUCT TEAM TO DO SPECIFIC
3:20:01	PRODUCT CHANGES IN MYANMAR AND
3:20:03	OTHER COUNTRIES THAT MAY HAVE
3:20:05	SIMILAR ISSUES IN THE FUTURE TO
3:20:10	PREVENT THIS FROM HAPPENING.
3:20:12	>> SENATOR CRUZ AND I SENT A
3:20:17	LETTER TO APPLE ASKING WHAT THEY
3:20:19	WILL DOING ABOUT CHINESE
3:20:23	SENSORSHIP.
3:20:27	I WANT TO KNOW WHAT YOU'LL DO
3:20:30	ABOUT CHINESE SENSORSHIP WHEN
3:20:30	THEY COME TO YOU.
3:20:31	>> SENATOR GRAHAM IS UP NEXT.
3:20:33	>> ARE YOU FAMILIAR WITH ANDREW
3:20:37	BOSWORTH?
3:20:38	>> YES, SENATOR, I AM.
3:20:40	>> HE SAID SO WE CONNECT MORE
3:20:43	PEOPLE, MAYBE SOMEONE DIES IN A
3:20:45	TERRORIST ATTACK COORDINATING ON
3:20:47	OUR TOOLS.
3:20:55	WE BELIEVE IN CONNECTING MORE
3:20:56	PEOPLE SO DEEPLY THAT ANYTHING
3:20:58	THAT ALLOWS US TO CONNECT PEOPLE
3:21:00	MORE OFTEN IS DE FACTO GOOD.
3:21:04	DO YOU AGREE WITH THAT?
3:21:07	>> NO I DO NOT.
3:21:09	BOS WROTE THAT AS AN INTERNAL
3:21:12	NOTE.
3:21:12	WE HAVE A LOT OF DISCUSSION
3:21:16	INTERNALLY.
3:21:16	I DISAGREED WITH IT AT THE TIME
3:21:18	HE WROTE IT.
3:21:19	IF YOU LOOK AT THE COMMENTS THE
3:21:24	PEOPLE DID TOO.
3:21:24	>> YOU DID A BAD JOB OF
3:21:30	COMMUNICATING YOUR DISPLEASURE
3:21:32	BECAUSE IF HE UNDERSTOOD WHERE
3:21:33	YOU'RE AT, HE WOULD HAVE NEVER
3:21:35	SAID IT.
3:21:37	>> WE TRY TO RUN OUR COMPANY
3:21:38	WHERE PEOPLE CAN EXPRESS
3:21:41	OPINIONS INTERNALLY.
3:21:41	>> THIS IS AN OPINION THAT
3:21:43	DISTURBS ME.
3:21:44	IF SOMEBODY THAT SAID THIS THAT
3:21:46	WORKS FOR ME, I'D FIRE THEM.
3:21:51	WHO IS YOUR BIGGEST COME PET
3:21:52	TER?
3:21:52	>> WE HAVE A LOT OF COMPETITORS.
3:21:59	>> WHO IS THE BIGGEST?
3:22:04	>> CAN I GIVE A BUNCH.
3:22:04	THREE CATEGORIES.
3:22:05	ONE IS THE TECH PLATFORMS.
3:22:09	GOOGLE, MIMICROSOFT.
3:22:18	>> IF I BUY A FORD AND IT
3:22:20	DOESN'T WORK WELL, I CAN BUY A
3:22:22	CHEVY.
3:22:22	IF I'M UPSET WITH FACEBOOK,
3:22:24	WHAT'S THE EQUIVALENT PRODUCT
3:22:25	THAT I CAN SIGN UP FOR?
3:22:26	>> THE SECOND CATEGORY THAT I
3:22:28	WAS GOING TO TALK ABOUT --
3:22:31	>> I'M NOT TALKING ABOUT
3:22:32	CATEGORIES.
3:22:32	I'M TALKING A REAL COMPETITION
3:22:34	YOU FACE.
3:22:34	CAR COMPANIES FACE A LOT OF
3:22:36	COMPETITION IF THEY FACE A
3:22:39	DEFECTIVE CAR.
3:22:39	PEOPLE STOP BUYING THAT CAR.
3:22:41	IS THERE AN ALTERNATIVE TO
3:22:42	FACEBOOK IN THE PRIVATE SECTOR?
3:22:44	>> YES.
3:22:45	THE AVER RAJ AMERICAN USES AGTS
3:22:47	DIFFERENT APPS TO COMMUNICATE
3:22:50	WITH THEIR FRIENDS AND STAY IN
3:22:53	TOUCH WITH PEOPLE.
3:22:54	>> THE SAME SERVICE YOU PROVIDE?
3:22:58	IS TWITTER THE SAME?
3:23:02	>> IT OVERLAPS.
3:23:03	>> YOU DON'T THINK YOU HAVE A
3:23:06	MONOPOLY?
3:23:06	>> IT DOESN'T FEEL LIKE THAT TO
3:23:10	ME.
3:23:10	>> IT DOESN'T.
3:23:12	INSTAGRAM.
3:23:12	YOU BOUGHT IT.
3:23:14	WHY DID YOU BUY INSTAGRAM?
3:23:17	>> THEY WERE VERIAL LENDED APP
3:23:19	DEVELOPERS MAKING GOOD USE OF
3:23:21	OUR PLATFORM AND UNDERSTOOD OUR
3:23:23	VALUES.
3:23:23	>> IT'S A GOOD BUSINESS
3:23:25	DECISION.
3:23:26	MY POINT IS ONE WAY TO REGULATE
3:23:29	A COMPANY IS THROUGH
3:23:31	COMPETITION, THROUGH GOVERNMENT
3:23:32	REGULATION.
3:23:33	HERE'S THE QUESTION THAT ALL OF
3:23:34	US NEED TO ANSWER.
3:23:35	WHAT DO WE TELL OUR CON STIMP
3:23:37	WENTS GIVEN WHAT'S HAPPENED HERE
3:23:38	WHY WE SHOULD LET YOU
3:23:43	SELF-REGULATE.
3:23:43	WHAT WOULD YOU TELL PEOPLE IN
3:23:45	SOUTH CAROLINA THAT GIVEN ALL
3:23:45	THE THINGS WE DISCOVERED HERE
3:23:47	IT'S A GOOD IDEA FOR US TO RELY
3:23:49	UPON YOU TO REGULATE YOUR OWN
3:23:51	BUSINESS PRACTICES?
3:23:54	>> MY POSITION IS NOT THAT THERE
3:23:56	SHOULD BE NO REGULATION.
3:23:57	I THINK THE INTERNET IS --
3:23:59	>> DO YOU EMBRACE REGULATION?
3:24:01	>> I THINK THE REAL QUESTION AS
3:24:03	THE INTERNET BECOMES MORE
3:24:04	IMPORTANT IN PEOPLE'S LIVES IS
3:24:06	WHAT IS THE RIGHT REGULATION.
3:24:07	>> YOU AS COMPANY, WELCOME
3:24:09	REGULATION?
3:24:09	>> I THINK IF IT'S THE RIGHT
3:24:11	REGULATION THEN YES.
3:24:12	>> DO YOU THINK THE EUROPEANS
3:24:15	HAVE IT RIGHT?
3:24:15	>> I THINK THEY GET THINGS
3:24:17	RIGHT.
3:24:17	>> HAVE YOU EVER SUBMITTED --
3:24:21	THAT'S TRUE.
3:24:21	WOULD YOU WORK WITH US IN TERMS
3:24:23	OF WHAT REGULATIONS YOU THINK
3:24:24	ARE NECESSARY IN YOUR INDUSTRY?
3:24:26	>> ABSOLUTELY.
3:24:27	>> WOULD YOU SUBMIT TO US SOME
3:24:30	PROPOSED REGULATIONREGULATIONS?
3:24:31	>> YES.
3:24:32	I'LL HAVE MY TEAM FOLLOW UP WITH
3:24:34	YOU SO WE CAN HAVE THIS
3:24:35	DISCUSSION ACROSS THE DIFFERENT
3:24:37	CATEGORIES WHERE I THINK THIS
3:24:38	DISCUSSION NEEDS TO HAPPEN.
3:24:39	>> LOOK FORWARD TO IT.
3:24:40	WHEN YOU SIGN UP FOR FACEBOOK,
3:24:43	YOU SIGN UP FOR TERMS OF
3:24:45	SERVICE.
3:24:46	ARE YOU FAMILIAR WITH THAT?
3:24:46	>> YES.
3:24:47	>> IT SAYS THE TERMS GOVERN YOUR
3:24:50	USE OF FACEBOOK AND THE
3:24:51	PRODUCTS, FEATURES, APPS,
3:24:55	TECHNOLOGY SOFTWARE WE OFFER
3:24:59	EXCEPT WHERE WE STATE SEPARATE
3:25:02	TERMS AND NOT WHERE THESE
3:25:05	APPLIES.
3:25:05	I'M A LAWYER AND I HAVE NO IDEA.
3:25:07	DO YOU THINK THE AVERAGE
3:25:09	CONSUMERS UNDERSTANDS WHAT THEY
3:25:10	ARE SIGNING UP FOR?
3:25:12	>> I DON'T THINK THAT THE
3:25:13	AVERAGE PERSON LIKELY READS THAT
3:25:15	WHOLE DOCUMENT.
3:25:16	I THINK THERE ARE DIFFERENT WAYS
3:25:17	THAT WE CAN COMMUNICATE THAT AND
3:25:19	HAVE A RESPONSIBILITY TO DO SO.
3:25:20	>> DO YOU AGREE WITH ME YOU
3:25:22	BETTER COME UP WITH DIFFERENT
3:25:23	WAYS BECAUSE THERE AIN'T
3:25:27	WORKING?
3:25:27	>> SENATOR, I THINK IN CERTAIN
3:25:29	AREAS THAT IS TRUE.
3:25:30	I THINK IN OTHER AREAS LIKE THE
3:25:32	CORE PART OF WHAT WE DO.
3:25:33	IF YOU THINK ABOUT THE MOST
3:25:35	BASIC LEVEL, PEOPLE COME TO
3:25:38	FACEBOOK, INSTAGRAM, WHAT'S APP
3:25:42	MESSENGER ABOUT A HUNDRED
3:25:43	BILLIONS TIMES A DAY TO SHARE A
3:25:47	CONTENT OR MESSAGE WITH SPECIFIC
3:25:48	SET OF PEOPLE.
3:25:49	PEOPLE UNDERSTAND BECAUSE WE
3:25:50	HAVE THE CONTROLS THIS LINE
3:25:51	EVERY TIME AND GIVEN THE VOLUME
3:25:55	OF THE ACTIVITY AND THE VALUE
3:25:56	THAT PEOPLE TELL US THEY ARE
3:25:58	GETTING FROM THAT, I THINK THAT
3:26:00	CONTROL IN LINE DOES SEEM TO BE
3:26:02	WORKING FAIRLY WELL.
3:26:03	WE CAN ALWAYS DO BETTER AND
3:26:08	THERE SERVICES COMPLEX AND YOU
3:26:12	GO AND POST A PHOTO.
3:26:14	I AGREE THAT IN MANY PLACES WE
3:26:16	COULD DO BETTER.
3:26:16	FOR THE CORE OF THE SERVICE IT
3:26:21	IS QUITE CLEAR.
3:26:21	>> THANK YOU, SENATOR.
3:26:23	>> I THINK WE ALL AGREE THAT
3:26:24	WHAT HAPPENED HERE WAS BAD.
3:26:25	YOU ACKNOWLEDGED IT WAS BREACH
3:26:27	OF TRUST AND THE WAY I EXPLAIN
3:26:29	IT TO MY CONSTITUENTS IS IF
3:26:31	SOMEONE BREAKS INTO MY APARTMENT
3:26:34	WITH A CROWBAR AND TAKE MY
3:26:35	STUFF, IT'S LIKE IF THE MANAGER
3:26:37	GAVE THEM THE KEYS OR IF THEY
3:26:39	DIDN'T HAVE ANY LOCKS ON DOORS,
3:26:42	IT'S STILL BREAK IN.
3:26:43	I BELIEVE WE NEED TO HAVE LAWS
3:26:44	AND RULES THAT ARE SOPHISTICATED
3:26:49	AS THE BRILLIANT PRODUCTS THAT
3:26:50	YOU'VE DEVELOPED HERE.
3:26:51	WE JUST HAVEN'T DONE THAT YET.
3:26:52	ONE OF THE AREAS THAT I'M
3:26:54	FOCUSED ON IS THE ELECTION.
3:26:56	I APPRECIATE THE SUPPORT THAT
3:26:57	YOU AND FACEBOOK AND NOW TWITTER
3:26:59	HAVE GIVEN TO THE HONEST ADS ACT
3:27:01	BILL THAT YOU MENTIONED THAT I'M
3:27:04	LEADING WITH SENATOR McCAIN AND
3:27:09	WARNER.
3:27:09	AS WE WORK TO PAS THIS LAW SO WE
3:27:11	HAVE THE SAME RULES THIS PLACE
3:27:13	TO DISCLOSE POLITICAL ADS AND
3:27:15	ISSUE ADS AS WE DO FOR TV AND
3:27:18	RADIO AS WELL AS DISCLAIMERS
3:27:19	THAT YOU'RE GOING TO TAKE EARLY
3:27:22	ACTION, AS SOON AS JUNE, BEFORE
3:27:24	THIS ELECTION, SO PEOPLE CAN
3:27:25	VIEW THESE ADS INCLUDING ISSUE
3:27:27	ADS, IS THAT CORRECT?
3:27:28	>> THAT IS CORRECT.
3:27:30	I WANT TO TAKE A MOMENT BEFORE I
3:27:31	GO INTO THIS MORE DETAIL TO
3:27:33	THANK YOU FOR YOUR LEADERSHIP ON
3:27:35	THIS.
3:27:35	THIS IS AN IMPORTANT AREA FOR
3:27:37	THE WHOLE INDUSTRY TO MOVE ON.
3:27:40	THE TWO SPECIFIC THINGS THAT
3:27:42	WE'RE DOING ARE ONE IS AROUND
3:27:47	TRANSPARENCY.
3:27:47	NOW YOU'RE GOING TO BE ABLE TO
3:27:48	GO AND CLICK ON ANY ADVERTISER
3:27:51	OR ANY PAGE ON FACEBOOK AND SEE
3:27:52	ALL THE ADS THEY ARE RUNNING.
3:27:54	THAT BRINGS ADVERTISING ONLINE,
3:27:56	ON FACEBOOK TO AN EVEN HIGHER
3:27:58	STANDARDS THAN WHAT YOU WOULD
3:27:59	HAVE ON TV OR PRINT MEDIA
3:28:02	BECAUSE THERE'S NOWHERE YOU CAN
3:28:04	SEE ALL THE TV ADS SOMEONE IS
3:28:08	RUNNING.
3:28:12	THIS CAMPAIGN OR THIRD PARTY IS
3:28:16	SAYING DIFFERENT MESSAGES TO
3:28:19	DIFFERENT TYPES OF PEOPLE IS
3:28:23	IMPORTANT.
3:28:28	>> SENATOR WARNER AND I HAVE
3:28:31	CALLED OR GOOGLE TO DO THE SAME.
3:28:34	WE'RE GOING TO HAVE A PATCH WORK
3:28:35	OF ADS.
3:28:37	I HOPE YOU'LL BE WORKING WITH US
3:28:38	TO PASS THIS BILL, IS THAT
3:28:41	RIGHT?
3:28:41	>> WE WILL.
3:28:42	>> THANK YOU.
3:28:43	ON THE SUBJECT OF CAMBRIDGE
3:28:46	ANALYTICA, WERE THESE PEOPLE,
3:28:47	THE 87 MILLION PEOPLE, USERS
3:28:51	CONCENTRATED IN CERTAIN STATES?
3:28:52	ARE YOU ABLE TO FIGURE OUT WHERE
3:28:54	THEY ARE FROM?
3:28:54	>> I DO NOT HAVE THAT
3:28:58	INFORMATION WITH ME BUT WE CAN
3:29:00	FOLLOW UP WITH YOUR OFFICE.
3:29:02	>> AS WE KNOW THAT ELECTION WAS
3:29:03	CLOSE AND IT WAS ONLY THOUSANDS
3:29:06	VOTES IN CERTAIN STATES.
3:29:09	YOU ALSO ESTIMATED THAT ROUGHLY
3:29:11	126 MILLION PEOPLE MAY HAVE BEEN
3:29:13	SHOWN CONTENT FROM FACEBOOK PAGE
3:29:15	ASSOCIATED WITH THE INTERNET
3:29:16	RESEARCH AGTS SI.
3:29:17	HAVE YOU DETERMINED WHETHER ANY
3:29:19	OF THOSE PEOPLE WERE THE SAME
3:29:23	FACEBOOK USERS WHOSE DATA WAS
3:29:25	SHARED WITH CAMBRIDGE ANALYTICA?
3:29:27	ARE YOU ABLE TO MAKE THAT
3:29:30	DETERMINATION?
3:29:30	>> WE'RE INVESTIGATING THAT NOW.
3:29:31	WE BELIEVE IT'S POSSIBLE THERE
3:29:32	WILL BE A CONNECTION THERE.
3:29:33	>> THAT SEEMS LIKE A BIG DEAL AS
3:29:35	WE LOOK BACK AT THAT LAST
3:29:37	ELECTION.
3:29:38	FORMER CAMBRIDGE ANALYTICA
3:29:41	EMPLOYEE CHRISTOPHER WILEY SAID
3:29:43	THE DATA IT IMPROPERLY OBTAINED
3:29:47	FROM FACEBOOK USERS COULD BE
3:29:49	STORED IN RUSSIA.
3:29:50	DO YOU AGREE THAT'S A
3:29:54	POSSIBILITY?
3:29:55	>> SORRY, ARE YOU ASK IF
3:29:58	CAMBRIDGE ANALYTICA COULD BE
3:30:02	STORED IN RUSSIA?
3:30:03	>> THAT'S WHAT HE SAID THIS
3:30:04	WEEKEND ON A SUNDAY SHOW.
3:30:05	>> I DON'T HAVE ANY SPECIFIC
3:30:07	KNOWLEDGE THAT WOULD SUGGEST
3:30:08	THAT.
3:30:09	ONE OF THE STEPS WE NEED TO TAKE
3:30:11	IS DO A FULL AUDIT OF ALL OF
3:30:14	CAMBRIDGE ANALYTICA SYSTEMS TO
3:30:17	UNDERSTAND WHAT THEY'RE DOING,
3:30:18	MAKE SURE THEY REMOVE THE DATA
3:30:20	AND IF THEY HAVEN'T WE'LL TAKE
3:30:23	LEGAL ACTION FOR THEM TO DO SO.
3:30:24	THAT AUDIT, WE HAVE SEEDED THAT
3:30:27	IN ORDER TO LET THE UK
3:30:30	GOVERNMENT LET THE GOVERNMENT
3:30:31	INVESTIGATION FIRST.
3:30:41	WE'RE COMMITTED TO COMPLETING
3:30:44	THAT.
3:30:44	>> YOU STATED YOU WOULD SUPPORT
3:30:46	SOME PRIVACY RULES SO EVERYONE
3:30:49	IS PLAYING BY THE SAME RULES
3:30:50	HERE.
3:30:50	YOU ALSO SAID HERE YOU SHOULD
3:30:52	HAVE NOTIFIED CUSTOMERS EARLIER.
3:30:54	WOULD YOU SUPPORT A RULE THAT
3:30:56	WOULD REQUIRE YOU TO NOTIFY YOUR
3:30:58	USERS OF A BREACH WITHIN 72
3:31:01	HOURS?
3:31:01	>> SENATOR, THAT MAKES SENSE TO
3:31:04	ME.
3:31:06	I THINK WE SHOULD HAVE OUR TEAM
3:31:08	FOLLOW UP WITH YOURS TO DISCUSS
3:31:10	DETAILS AROUND THAT AND MORE.
3:31:11	>> THANK YOU.
3:31:12	>> I THINK PART OF THIS WAS WHEN
3:31:14	PEOPLE DON'T EVEN KNOW THEIR
3:31:16	DATA HAS BEEN BREACHED, THAT'S A
3:31:18	HUGE PROBLEM.
3:31:18	I THINK WE GET TO SOLUTION
3:31:20	FASTERS WHEN WE GET THAT
3:31:21	INFORMATION OUT THERE.
3:31:22	THANK YOU AND WE LOOK FORWARD TO
3:31:23	PASSING THIS BILL.
3:31:24	WE'D LOVE TO PASS IT BEFORE THE
3:31:26	ELECTION ON THE HONEST ADS AND
3:31:28	LOOKING FORWARD TO BETTER
3:31:31	DISCLOSURE THIS ELECTION.
3:31:32	THANK YOU.
3:31:34	>> THANK YOU SENATOR KLOBUCHAR.
3:31:41	>> THANK YOU.
3:31:42	I TOLD YOU WHEN I SENT MY
3:31:45	BUSINESS CARDS DOWN TO BE
3:31:48	PRESENTED THEY CAME BACK FROM
3:31:49	THE SENATE PRINT SHOP WITH A
3:31:51	MESSAGE.
3:31:51	IT WAS THE FIRST BUSINESS CARD
3:31:54	THEY EVER PRINTED A FACEBOOK
3:31:56	ADDRESS ON.
3:31:56	THERE ARE DAYS WHEN I'VE
3:32:01	REGRETTED THAT BUT MORE DAYS WE
3:32:02	GET LOTS OF INFORMATION.
3:32:03	THERE ARE DAYS I WONDER IF
3:32:05	FACEBOOK FRIEND S A LITTLE MISAT
3:32:07	A TIMED.
3:32:07	IT DOESN'T SEEM LIKE I HAVE
3:32:09	THOSE EVERY SINGLE DAY.
3:32:11	THE PLATFORM YOU CREATED IS
3:32:15	REALLY IMPORTANT.
3:32:15	MY SON WHO IS 13 IS DEDICATED TO
3:32:22	INSTAGRAM.
3:32:22	HE WOULD WANT TO BE SURE I
3:32:27	MENTION THAT WHILE I'M HERE WITH
3:32:29	YOU.
3:32:29	LOTS OF WAYS TO CONNECT PEOPLE.
3:32:32	THE INFORMATION IS AN IMPORTANT
3:32:36	COMMODITY AND IT'S WHAT MAKES
3:32:38	YOUR BUSINESS WORK.
3:32:39	I GET THAT.
3:32:40	HOWEVER, I WONDER ABOUT SOME OF
3:32:42	THE COLLECTION EFFORTS AND MAYBE
3:32:43	WE CAN GO THROUGH LARGELY EVEN
3:32:45	YES AND NO AND WE'LL GET BACK TO
3:32:48	MORE EXPANSIVE DISCUSSION OF
3:32:52	THIS.
3:32:57	DO YOU COLLECT USER DATA THROUGH
3:32:59	CROSS DEVICE TRACKING?
3:33:00	>> I BELIEVE WE DO LINK PEOPLE'S
3:33:02	ACCOUNTS BETWEEN DEVICES IN
3:33:03	ORDER TO MAKE SURE THAT THEIR
3:33:06	FACEBOOK AND INSTAGRAM AND OTHER
3:33:09	EXPERIENCES CAN BE SYNCED.
3:33:12	>> THAT WOULD INCLUDE OFFLINE
3:33:14	DATA.
3:33:15	DATA THAT'S NOT LINKED TO
3:33:16	FACEBOOK BUT SOME DEVICE THEY
3:33:18	WENT THROUGH FACEBOOK ON?
3:33:19	IS THAT RIGHT?
3:33:20	>> SENATOR, I WANT TO MAKE SURE
3:33:21	WE GET THIS RIGHT.
3:33:25	I WANT TO HAVE MY FAMILY TOLL UP
3:33:27	WITH YOU ON THAT AFTER WARDS.
3:33:29	>> THAT DOESN'T SEEM THAT
3:33:31	COMPLICATED TO ME.
3:33:32	YOU UNDERSTAND THIS BETTER THAN
3:33:33	I DO.
3:33:35	DO YOU TRACK DEVICES THAT AN
3:33:39	INDIVIDUAL WHO USES FACEBOOK HAS
3:33:45	THAT IS CONNECTED TO THE DEVICE
3:33:46	THEY USE FOR THEIR FACEBOOK
3:33:48	CONNECTION BUT NOT NECESSARILY
3:33:49	CONNECTED TO FACEBOOK?
3:33:54	>> I'M IN THE SURE OF THE ANSWER
3:33:55	TO THAT QUESTION.
3:33:56	>> REALLY?
3:33:58	>> YES.
3:33:58	THERE MAY BE SOME DATA NECESSARY
3:34:01	TO PROVIDE THE SERVICE THAT WE
3:34:02	DO.
3:34:02	I DON'T HAVE THAT SITTING HERE
3:34:09	TODAY.
3:34:09	>> THE FTC FLAGGED CROSS DEVICE
3:34:12	TRACKING AS ONE OF THEIR
3:34:14	CONCERNS.
3:34:15	GENERALLY THAT PEOPLE ARE
3:34:16	TRACKING DEVICES THAT THE USERS
3:34:18	OF SOMETHING LIKE FACEBOOK DON'T
3:34:22	KNOW THEY'RE BEING TRACKED.
3:34:23	HOW DO YOU DISCLOSE YOUR
3:34:28	COLLECTION METHODS?
3:34:30	IS THAT ALL IN THIS DOCUMENT
3:34:31	THAT I WOULD SEE AND AGREE TO
3:34:35	BEFORE I ENTERED INTO FACEBOOK?
3:34:38	>> YES.
3:34:39	THERE ARE TWO WAYS WE DO THIS.
3:34:41	SOMEONE WE TRY TO BE EXHAUSTIVE
3:34:43	IN TERMS OF SERVICE AND PRIVACY
3:34:45	POLICIES.
3:34:46	MORE IMPORTANTLY, WE TRY TO
3:34:47	PROVIDE INLINE CONTROLS SO THAT
3:34:49	PEOPLE ARE IN PLAIN ENGLISH THAT
3:34:51	PEOPLE CAN UNDERSTAND.
3:34:52	THEY CAN EITHER GO TO SETTINGS
3:34:55	OR SHOW THEM AT THE TOP OF THE
3:34:57	APP.
3:34:58	PEOPLE UNDERSTAND ALL CONTROLS
3:34:59	AND SETTINGS THEY HAVE AND CAN
3:35:03	CONFIGURE THEIR EXPERIENCE THE
3:35:04	WAY THEY WANT.
3:35:06	>> DO PEOPLE NOW GIVE YOU
3:35:09	PERMISSION TO TRACK SPECIFIC
3:35:11	DEVICES IN THEIR CONTRACT AND IF
3:35:13	THEY DO IS THAT A RELATIVELY NEW
3:35:16	ADDITION TO WHAT YOU DO?
3:35:19	>> SENATOR --
3:35:20	>> AM I ABLE TO OPT OUT?
3:35:22	AM I ABLE TO SAY IT'S OKAY FOR
3:35:24	YOU TO TRACK WHAT I'M SAYING ON
3:35:26	FACEBOOK BUT DON'T TRACK WHAT
3:35:28	I'M TEXTING TO SOMEBODY ELSE OFF
3:35:31	FACEBOOK, ON AN ANDROID PHONE?
3:35:34	>> YES, SENATOR.
3:35:37	IN GENERAL FACEBOOK IS NOT
3:35:38	COLLECTING DATA FROM OTHER APPS
3:35:40	THAT YOU USE.
3:35:41	THERE MAY BE SOME SPECIFIC
3:35:43	THINGS ABOUT THE DEVICE YOU'RE
3:35:44	USING THAT FACEBOOK NEEDS TO
3:35:46	UNDERSTAND IN ORDER TO OFFER THE
3:35:48	SERVICE BUT IF YOU'RE USING
3:35:50	GOOGLE OR USING SOME TEXTING
3:35:54	APP, UNLESS YOU SPECIFICALLY OPT
3:35:57	IN THAT YOU WANT TO SHARE THE
3:35:59	TEXTING APP INFORMATION,
3:36:00	FACEBOOK WOULDN'T SEE THAT.
3:36:02	>> HAS IT ALWAYS BEEN THAT WAY
3:36:05	OR IS THAT A RECENT ADDITION TO
3:36:08	HOW YOU DEAL WITH THOSE OTHER
3:36:12	WAYS THAT IE MIGHT COMMUNICATE?
3:36:14	>> SENATOR, MY UNDERSTANDING IS
3:36:17	THAT IS HOW THE MOBILE OPERATING
3:36:22	SYSTEMS ARE ARCHITECTED.
3:36:27	>> YOU DON'T HAVE BUNDLED
3:36:29	PERMISSIONS FOR HOW I CAN AGREE
3:36:33	TO WHAT DEVICES I MAY USE THAT
3:36:36	YOU MAY HAVE CONTACT WITH?
3:36:44	DO YOU BUNDLE THAT PERMISSION OR
3:36:47	AM AABLE TO SAY WHAT I'M WILLING
3:36:48	FOR YOU TO WATCH AND WHAT I
3:36:50	DON'T WANT YOU TO WATCH?
3:36:53	I THINK WE MAY HAVE TO TAKE THAT
3:36:55	FOR THE RECORD BASED ON
3:36:57	EVERYBODY ELSE'S TIME.
3:36:59	>> THANK YOU, SENATOR.
3:37:01	>> THANK YOU.
3:37:02	MR. ZUCKERBERG, WOULD YOU BE
3:37:08	COMFORTABLE SHARING NAME OF THE
3:37:09	HOTEL YOU STAYED IN LAST NIGHT?
3:37:13	>> NO.
3:37:16	>> IF YOU MESSAGED ANYBODY THIS
3:37:18	WEEK, WOULD YOU SHARE WITH US
3:37:21	THE NAMES OF THE PEOPLE YOU
3:37:22	MESSAGED?
3:37:23	>> NO, I WOULD PROBABLY NOT
3:37:25	CHOOSE TO DO THAT PUBLICLY HERE.
3:37:28	>> I THINK THIS MIGHT BE WHAT
3:37:31	THIS IS ALL ABOUT.
3:37:31	YOUR RIGHT TO PRIVACY.
3:37:33	THE LIMITS OF YOUR RIGHT TO
3:37:34	PRIVACY AND HOW MUCH YOU GIVE
3:37:36	AWAY IN MODERN AMERICA IN THE
3:37:38	NAME OF QUOTE, CONNECTING PEOPLE
3:37:41	AROUND THE WORLD.
3:37:43	THE QUESTION OF WHAT INFORMATION
3:37:45	FACEBOOK'S COLLECTING, WHO THEY
3:37:46	ARE SENDING IT TO AND WHETHER
3:37:48	THEY ASKED ME IN ADVANCE MY
3:37:50	PERMISSION TO DO THAT.
3:37:51	IS THAT FAIR THING FOR A USER OF
3:37:54	FACEBOOK TO EXPECT?
3:37:55	>> YES, SENATOR.
3:37:56	I THINK EVERY SHOULD HAVE
3:37:57	CONTROL OVER HOW THEIR
3:37:59	INFORMATION IS USED.
3:38:01	AS WE HAVE TALKED ABOUT IN SOME
3:38:02	OF THE OTHER QUESTIONS, I THINK
3:38:06	THAT IS LAID OUT IN SOME OF THE
3:38:08	DOCUMENTS BUT MORE IMPORTANTLY
3:38:09	YOU WANT TO GIVE PEOPLE CONTROL
3:38:10	IN THE PRODUCT ITSELF.
3:38:13	THE MOST IMPORTANT WAY THIS
3:38:14	HAPPENS ACROSS OUR SERVICES IS
3:38:16	THAT EVERY DAY PEOPLE COME --
3:38:18	>> AS WE REACH THE 4:00 HOUR IN
3:38:21	THE EAST YOU'RE WATCHING LIVE
3:38:23	COVERAGE OF FACEBOOK CEO SENATE
3:38:25	TESTIMONY.
3:38:25	SOME YOU HAVE WILL NOW BE
3:38:28	RETURNING TO REGULAR PROGRAMMING
3:38:30	FOR.
3:38:30	FOR THE REST OF YOU, OUR
3:38:31	COVERAGE CONTINUES.
3:38:36	CONTINUES.
3:38:37	>> IN THE PAST, SOMETIMES THAT
3:38:39	INFORMATION IS GOING WAY BEYOND
3:38:40	THEIR FRIENDS.
3:38:42	SOMETIMES PEOPLE MADE MONEY OFF
3:38:45	SHARING THAT, CORRECT?
3:38:50	>> SENATOR, I THINK YOU'RE
3:38:51	REFERRING TO THE DEVELOPER
3:38:52	PLATFORM.
3:38:53	IT MAY BE USEFUL TO GIVE
3:38:54	BACKGROUND ON HOW WE SET IT UP,
3:38:56	IF THAT'S USEFUL.
3:38:57	>> I HAVE THREE MINUTES LEFT, SO
3:38:58	MAYBE YOU CAN DO THAT FOR THE
3:39:00	RECORD.
3:39:00	BECAUSE I HAVE A COUPLE OTHER
3:39:02	QUESTIONS I WOULD LIKE TO ASK.
3:39:04	YOU HAVE RECENTLY ANNOUNCED
3:39:07	SOMETHING THAT IS CALLED
3:39:12	MESSENGER KIDS.
3:39:12	FACEBOOK CREATED AN APP ALLOWING
3:39:14	KIDS BETWEEN THE AGES OF 6 AND
3:39:17	12 TO SEND VIDEO AND TEXT
3:39:20	MESSAGES THROUGH FACEBOOK AS AN
3:39:22	EXTENSION OF THEIR PARENTS'
3:39:23	ACCOUNT.
3:39:24	YOU HAVE CARTOON-LIKE STICKERS
3:39:28	AND CONTENT THAT APPEALS TO
3:39:30	FIRST GRADERS.
3:39:31	ON JANUARY 30th, CAMPAIGN FOR
3:39:36	COMMERCIAL-FREE CHILDHOOD.
3:39:37	POINTED TO A WEALTH OF RESEARCH
3:39:40	DEMONSTRATING THAT EXCESSIVE USE
3:39:41	OF DIGITAL DEVICES AND SOCIAL
3:39:43	MEDIA IS HARMFUL TO KIDS AND
3:39:45	ARGUED THAT YOUNG CHILDREN
3:39:46	SIMPLY ARE NOT READY TO HANDLE
3:39:48	SOCIAL MEDIA ACCOUNTS AT AGE 6.
3:39:51	IN ADDITION, THERE ARE CONCERNS
3:39:52	ABOUT DATA THAT IS BEING
3:39:54	GATHERED ABOUT THESE KIDS.
3:39:57	AND OTHER CERTAIN LIMITS, WE
3:40:00	KNOW, WHICH CHILDREN'S ONLINE
3:40:02	PRIVACY PROTECTION ACT.
3:40:03	WHAT GUARANTEES CAN GIVE YOU
3:40:06	THAT NO DATA FROM MESSENGER KIDS
3:40:09	IS OR WILL BE SHARED WITH THOSE
3:40:11	THAT MIGHT VIOLATE THAT LAW.
3:40:12	>> SENATOR, A NUMBER OF THINGS
3:40:15	THAT ARE IMPORTANT HERE.
3:40:16	THE BACKGROUND ON MESSENGER KIDS
3:40:18	IS WE HEARD FEEDBACK FROM
3:40:19	THOUSANDS OF PARENTS THAT THEY
3:40:22	WANT TO BE ABLE TO STAY IN TOUCH
3:40:23	WITH THEIR KIDS AND CALL THEM,
3:40:24	USE APPS LIKE FACETIME WHEN
3:40:26	THEY'RE WORKING LATE OR NOT
3:40:28	AROUND AND WANT TO COMMUNICATE
3:40:30	WITH THEIR KIDS BUT THEY WANT
3:40:31	COMPLETE CONTROL.
3:40:32	I THINK WE CAN AGREE WHEN YOUR
3:40:34	KID IS 6 OR 7, EVEN IF THEY HAVE
3:40:38	ACCESS TO A PHONE, YOU WANT TO
3:40:39	CONTROL EVERYONE WHO THEY
3:40:39	CONTACT.
3:40:40	THERE WASN'T AN APP THAT DID
3:40:41	THAT.
3:40:41	WE BUILT THIS SERVICE TO DO
3:40:43	THAT.
3:40:43	THE APP COLLECTS A MINIMUM
3:40:45	AMOUNT OF INFORMATION THAT IS
3:40:47	NECESSARY TO OPERATE THE
3:40:48	SERVICE.
3:40:49	SO, FOR EXAMPLE, THE MESSAGES
3:40:50	THAT PEOPLE SEND IS SOMETHING
3:40:51	THAT WE COLLECT IN ORDER TO
3:40:53	OPERATE THE SERVICE.
3:40:54	BUT IN GENERAL, THAT DATA IS NOT
3:40:56	GOING TO BE SHARED WITH THIRD
3:40:58	PARTIES.
3:40:58	IT IS NOT CONNECTED TO THE
3:41:01	BROADER FACEBOOK --
3:41:02	>> EXCUSE ME, AS A LAWYER I
3:41:03	PICKED UP THE WORD ON THE PHRASE
3:41:07	"IN GENERAL."
3:41:08	IT SEEMS TO SUGGEST IN SOME
3:41:09	CIRCUMSTANCES IT WILL BE SHARED
3:41:10	WITH THIRD PARTIES.
3:41:11	>> NO, IT WILL NOT.
3:41:13	>> ALL RIGHT.
3:41:13	WOULD YOU BE OPEN TO THE IDEA
3:41:15	THAT SOMEONE HAVING REACHED
3:41:17	ADULT AGE, HAVING GROWN UP WITH
3:41:19	MESSENGER KIDS SHOULD BE ALLOWED
3:41:20	TO DELETE THE DATA THAT YOU'VE
3:41:24	COLLECTED?
3:41:24	>> SENATOR, YES.
3:41:28	AS A MATTER OF FACT, WHEN YOU
3:41:29	BECOME 13, WHICH IS THE LEGAL
3:41:31	LIMIT.
3:41:31	WE DON'T ALLOW PEOPLE UNDER THE
3:41:33	AGE OF 13 TO USE FACEBOOK.
3:41:35	YOU DON'T AUTOMATICALLY GO FROM
3:41:36	HAVING A MESSENGER KIDS ACCOUNT
3:41:38	TO A FACEBOOK ACCOUNT.
3:41:39	YOU HAVE TO START OVER AND GET A
3:41:41	FACEBOOK ACCOUNT.
3:41:42	SO I THINK IT'S A GOOD IDEA TO
3:41:44	CONSIDER MAKING SURE THAT ALL
3:41:45	THAT INFORMATION IS DELETED AND,
3:41:46	IN GENERAL, PEOPLE WILL BE
3:41:48	STARTING OVER WHEN THEY GET
3:41:49	THEIR FACEBOOK OR OTHER
3:41:51	ACCOUNTS.
3:41:52	>> I HAVE A FEW SECONDS,
3:41:53	ILLINOIS HAS A BIO METRIC
3:41:57	INFORMATION PRIVACY ACT, OUR
3:41:58	STATE DOES, TO REGULATE THE
3:42:02	COMMERCIAL USE OF FACIAL AND
3:42:04	FINGER SCANS IN THE LIKE.
3:42:06	WE'RE IN A DEBATE ON THAT, I'M
3:42:09	AFRAID FACEBOOK IS TRYING TO
3:42:10	CARVE OUT EXCEPTIONS TO THAT.
3:42:11	I HOPE YOU'LL FILL ME IN ON HOW
3:42:15	IT'S CONSISTENT WITH PROTECTING
3:42:17	PRIVACY.
3:42:17	>> THANK YOU.
3:42:19	>> THANK YOU MR. ZUCKERBERG FOR
3:42:20	BEING HERE.
3:42:21	I NOTE UP UNTIL 2014, THE MANTRA
3:42:27	OR MOTTO OF FACEBOOK WAS "MOVE
3:42:30	FAST AND BREAK THINGS" IS THAT
3:42:32	CORRECT?
3:42:32	>> I DON'T KNOW WHEN WE CHANGED
3:42:34	IT, BUT THE MANTRA IS CURRENTLY
3:42:38	"MOVE FAST WITH STABLE
3:42:38	INFRASTRUCTURE" WHICH IS A MUCH
3:42:40	LESS SEXY MANTRA.
3:42:41	>> IT SOUNDS MORE BORING.
3:42:42	BUT MY QUESTION IS, DURING THE
3:42:44	TIME IT WAS FACEBOOK'S MANTRA,
3:42:46	OR MOTTO TO MOVE FAST AND BREAK
3:42:48	THINGS, DO YOU THINK SOME OF THE
3:42:52	MISJUDGMENTS, PERHAPS, MISTAKES
3:42:55	YOU'VE ADMITTED TO HERE WERE AS
3:42:57	A RESULT OF THAT CULTURE OR THAT
3:43:01	ATTITUDE, PARTICULARLY WITH
3:43:01	REGARDS TO PERSONAL PRIVACY OF
3:43:03	INFORMATION OF YOUR SUBSCRIBERS?
3:43:08	>> SENATOR, I THINK WE MADE
3:43:10	MISTAKES BECAUSE OF THAT, BUT
3:43:14	THE BROADEST MISTAKES WE MADE
3:43:16	HERE IS NOT TAKING A BROAD
3:43:18	ENOUGH VIEW OF OUR
3:43:20	RESPONSIBILITY.
3:43:21	THE MOVE FAST CULTURAL VALUE IS
3:43:24	MORE TACTICAL AROUND WHETHER
3:43:26	ENGINEERS CAN SHIP THINGS AND
3:43:28	DIFFERENT WAYS WE OPERATE.
3:43:29	BUT I THINK THE BIG MISTAKE THAT
3:43:31	WE'VE MADE LOOKING BACK ON THIS
3:43:33	IS VIEWING OUR RESPONSIBILITY AS
3:43:35	JUST BUILDING TOOLS RATHER THAN
3:43:38	VIEWING OUR WHOLE RESPONSIBILITY
3:43:39	AS MAKES SURE THOSE TOOLS ARE
3:43:41	USED FOR GOOD.
3:43:44	>> I APPRECIATE THAT BECAUSE
3:43:48	PREVIOUSLY YOUR -- OR EARLY IN
3:43:49	THE PAST, WE'VE BEEN TOLD THAT
3:43:53	PLATFORMS LIKE FACEBOOK,
3:43:55	TWITTER, INSTAGRAM, THE LIKE ARE
3:43:57	NEUTRAL PLATFORMS AND THE PEOPLE
3:43:58	WHO OWN AND RUN THOSE FOR PROFIT
3:44:04	NOT CRITICIZING DOING SOMETHING
3:44:06	FOR PROFIT IN THIS COUNTRY, BUT
3:44:07	THEY HAVE BORE NO RESPONSIBILITY
3:44:08	FOR THEIR CONTENT.
3:44:12	YOU AGREE NOW THAT FACEBOOK AND
3:44:14	OTHER SOCIAL MEDIA PLATFORMS ARE
3:44:17	NOT NEUTRAL PLATFORMS BUT BEAR
3:44:19	SOME RESPONSIBILITY FOR THE
3:44:20	CONTENT.
3:44:20	>> I AGREE THAT WE'RE
3:44:21	RESPONSIBLE FOR THE CONTENT.
3:44:24	I THINK THERE'S ONE OF THE BIG
3:44:27	SOCIETAL QUESTIONS THAT I THINK
3:44:28	WE'RE GOING TO NEED TO ANSWER IS
3:44:31	THE CURRENT FRAMEWORK THAT WE
3:44:34	HAVE IS BASED ON THIS REACTIVE
3:44:36	MODEL THAT ASSUMES THERE AREN'T
3:44:38	AI TOOLS THAT CAN PROACTIVELY
3:44:42	TELL WHETHER SOMETHING WAS
3:44:44	TERRORIST CONTENT OR SOMETHING
3:44:45	BAD.
3:44:45	IT NATURALLY RELIED ON REQUIRING
3:44:47	PEOPLE TO FLAG FOR A COMPANY AND
3:44:49	THE COMPANY NEEDING TO TAKE
3:44:50	REASONABLE ACTION.
3:44:51	IN THE FUTURE, WE'RE GOING TO
3:44:53	HAVE TOOLS THAT WILL BE ABLE TO
3:44:56	IDENTIFY MORE TYPES OF BAD
3:44:58	CONTENT.
3:44:58	I THINK THERE ARE MORAL AND
3:44:59	LEGAL OBLIGATION QUESTIONS THAT
3:45:03	I THINK WE'LL HAVE TO WRESTLE
3:45:04	WITH AS A SOCIETY ABOUT WHEN WE
3:45:05	WANT TO REQUIRE COMPANIES TO
3:45:06	TAKE ACTION PRO ACTIVELY ON
3:45:08	CERTAIN OF THOSE THINGS.
3:45:09	AND WHEN IT GETS IN THE WAY --
3:45:10	>> I APPRECIATE THAT.
3:45:11	I HAVE TWO MINUTES LEFT.
3:45:12	>> ALL RIGHT.
3:45:13	>> TO ASK YOU QUESTIONS.
3:45:16	SO, INTERESTINGLY, THE TERMS OF
3:45:20	THE -- WHAT DO YOU CALL IT, THE
3:45:21	TERMS OF SERVICE IS A LEGAL
3:45:22	DOCUMENT WHICH DISCLOSES TO YOUR
3:45:25	SUBSCRIBERS HOW THEIR
3:45:26	INFORMATION WILL BE USED.
3:45:27	HOW FACEBOOK IS GOING TO
3:45:30	OPERATE.
3:45:31	BUT YOU CAN SEE THAT YOU DOUBT
3:45:35	EVERYBODY READS OR UNDERSTANDS
3:45:38	THAT LEGALESE, THOSE TERMS OF
3:45:41	SERVICE.
3:45:41	IS THAT TO SUGGEST THAT THE
3:45:47	CONCEPT THAT PEOPLE GIVE IS NOT
3:45:51	INFORMED CONSENT.
3:45:52	THEY MAY NOT READ IT, IF THEY
3:45:55	READ IT, THEY MAY NOT UNDERSTAND
3:45:57	IT.
3:45:57	>> I THINK WE HAVE A BROADER
3:45:58	RESPONSIBILITY THAN WHAT THE LAW
3:46:00	REQUIRES.
3:46:01	>> I'M TALKING ABOUT I
3:46:02	APPRECIATE THAT.
3:46:02	WHAT I'M ASKING ABOUT IN TERMS
3:46:04	OF WHAT YOUR SUBSCRIBERS
3:46:06	UNDERSTAND IN TERMS OF HOW THEIR
3:46:09	DATA IS GOING TO BE USED.
3:46:10	BUT LET ME GO TO THE TERMS OF
3:46:15	SERVICE UNDER PARAGRAPH TWO.
3:46:16	YOU SAY YOU OWN ALL THE CONTENT
3:46:20	AND INFORMATION YOU POST ON
3:46:21	FACEBOOK.
3:46:21	THAT'S WHAT YOU'VE TOLD US TODAY
3:46:22	A NUMBER OF TIMES.
3:46:26	IF I CHOOSE TO TERMINATE MY
3:46:30	FACEBOOK ACCOUNT, CAN I BAR
3:46:33	FACEBOOK OR ANY THIRD PARTIES
3:46:34	FROM USING THE DATA THAT I
3:46:36	PREVIOUSLY SUPPLIED FOR ANY
3:46:39	PURPOSE WHATSOEVER?
3:46:41	>> YES, SENATOR, IF YOU DELETE
3:46:43	YOUR ACCOUNT, WE SHOULD GET RID
3:46:45	OF YOUR INFORMATION.
3:46:46	>> YOU SHOULD OR DO?
3:46:48	>> WE DO.
3:46:48	>> HOW ABOUT THIRD PARTIES YOU
3:46:49	HAVE CONTRACTED WITH?
3:46:50	DO YOU USE SOME OF THAT
3:46:52	UNDERLYING INFORMATION, PERHAPS
3:46:54	TO TARGET ADVERTISING FOR
3:46:59	THEMSELVES?
3:47:00	YOU CAN'T -- DO YOU CLAW BACK
3:47:02	THAT INFORMATION, AS WELL, OR
3:47:03	DOES IT REMAIN IN THEIR CUSTODY?
3:47:06	>> SENATOR, I'M GLAD YOU BROUGHT
3:47:08	IT UP.
3:47:09	THERE'S A COMMON MISPERCEPTION
3:47:10	ABOUT FACEBOOK THAT WE SELL DATA
3:47:11	TO ADVERTISERS.
3:47:13	AND WE DO NOT SELL DATA TO
3:47:18	ADVERTISERS.
3:47:18	>> YOU CLEARLY RENT IT.
3:47:19	>> WHAT WE ALLOW IS FOR
3:47:20	ADVERTISERS TO TELL US WHO THEY
3:47:21	WANT TO REACH, AND THEN WE DO
3:47:23	THE PLACEMENT.
3:47:24	SO IF AN ADVERTISER COMES TO US
3:47:26	AND SAYS, ALL RIGHT, I'M A SKI
3:47:28	SHOP AND I WANT TO SELL SKIS TO
3:47:32	WOMEN, THEN WE MIGHT HAVE SOME
3:47:34	SENSE BECAUSE PEOPLE SHARED
3:47:36	SKIING-RELATED CONTENT OR SAID
3:47:37	THEY WERE INTERESTED IN THAT.
3:47:38	THEY SHARED WHETHER THEY'RE A
3:47:41	WOMAN.
3:47:41	AND THEN WE CAN SHOW THE ADS TO
3:47:44	THE RIGHT PEOPLE WITHOUT THAT
3:47:45	DATA CHANGING HANDS AND GOING TO
3:47:46	THE ADVERTISER.
3:47:48	THAT'S A FUNDAMENTAL PART OF HOW
3:47:49	OUR MODEL L WORKS AND SOMETHING
3:47:51	THAT IS MISUNDERSTOOD.
3:47:53	I APPRECIATE YOU BROUGHT IT UP.
3:47:55	>> SENATOR, CORNYN, THANK YOU.
3:47:57	>>> WE INDICATED WE WOULD TAKE A
3:47:58	COUPLE OF BREAKS AND GIVE OUR
3:48:00	WITNESS AN OPPORTUNITY.
3:48:01	I THINK WE'VE BEEN GOING NOW FOR
3:48:03	JUST UNDER TWO HOURS, SO --
3:48:05	>> WE CAN DO A FEW MORE.
3:48:08	>> YOU WANT TO KEEP GOING?
3:48:10	MAYBE 15 MINUTES.
3:48:12	DOES THAT WORK?
3:48:12	>> ALL RIGHT.
3:48:13	WE'LL KEEP GOING.
3:48:15	SENATOR BLUMENTHAL IS UP NEXT.
3:48:18	AND WE WILL COMMENCE.
3:48:19	THANK YOU, MR.  CHAIRMAN.
3:48:21	>> THANK YOU FOR BEING HERE
3:48:26	TODAY, MR. ZUCKERBERG.
3:48:27	YOU TOLD US TODAY AND THE WORLD
3:48:30	THAT FACEBOOK WAS DECEIVED BY
3:48:49	ALEXANDER McHOCAN.
3:48:56	>> YES.
3:48:57	>> FACEBOOK WAS UNNOTICED THAT
3:49:01	HE COULD SELL THAT USER
3:49:03	INFORMATION.
3:49:03	HAVE YOU SEEN THE TERMS OF
3:49:04	SERVICE BEFORE?
3:49:05	>> I HAVE NOT.
3:49:06	>> WHO, IN FACEBOOK, WAS
3:49:07	RESPONSIBLE FOR SEEING THOSE
3:49:11	TERMS OF SERVICE THAT PUT YOU ON
3:49:14	NOTICE THAT THAT INFORMATION BE
3:49:18	SOLD?
3:49:19	>> SENATOR, OUR APP REVIEW TEAM
3:49:21	WOULD BE RESPONSIBLE FOR THAT.
3:49:22	>> HAS ANYONE BEEN FIRED ON THE
3:49:24	APP REVIEW TEAM?
3:49:27	>> SENATOR, NOT BECAUSE OF THIS.
3:49:34	>> DOESN'T THAT TERM OF SERVICE
3:49:39	CONFLICT WITH THE FTC ORDER THAT
3:49:42	FACEBOOK WAS UNDER AT THIS VERY
3:49:45	TIME THAT THIS TERM OF SERVICE
3:49:47	WAS, IN FACT, PROVIDED TO
3:49:50	FACEBOOK?
3:49:50	AND YOU'LL NOTE THAT THE FTC
3:49:56	ORDER SPECIFICALLY REQUIRES
3:49:58	FACEBOOK TO PROTECT PRIVACY.
3:49:59	ISN'T THERE A CONFLICT THERE?
3:50:02	>> SENATOR, IT CERTAINLY APPEARS
3:50:04	THAT WE SHOULD HAVE BEEN AWARE
3:50:06	THAT THIS APP DEVELOPER
3:50:07	SUBMITTED A TERM THAT WAS IN
3:50:09	CONFLICT WITH THE RULES OF THE
3:50:11	PLATFORM.
3:50:12	>>WELL, WHAT HAPPENED HERE WAS,
3:50:17	IN EFFECT, WILLFUL BLINDNESS.
3:50:20	IT WAS HEEDLESS AND RECKLESS, IN
3:50:22	FACT, AMOUNTED TO A VIOLATION OF
3:50:24	THE FTC CONSENT DECREE.
3:50:26	WOULD YOU AGREE?
3:50:28	>> NO, SENATOR.
3:50:29	MY UNDERSTANDING IS THAT IS NOT
3:50:32	THAT THIS WAS A VIOLATION OF THE
3:50:35	CONSENT DECREE.
3:50:36	AS I'VE SAID A NUMBER OF TIMES
3:50:39	TODAY, I THINK WE NEED TO TAKE A
3:50:40	BROADER VIEW OF OUR
3:50:41	RESPONSIBILITY AROUND PRIVACY
3:50:42	THAN WHAT IS MANDATED IN THE
3:50:43	CURRENT LAW.
3:50:43	>> HERE IS MY RESERVATION, MR.
3:50:46	ZUCKERBERG, AND I APOLOGIZE FOR
3:50:47	INTERRUPTING YOU, BUT MY TIME IS
3:50:52	LIMITED.
3:50:52	WE'VE SEEN THE APOLOGY TOURS
3:50:55	BEFORE.
3:50:56	YOU HAVE REFUSED TO ACKNOWLEDGE
3:50:57	AN ETHICAL OBLIGATION TO HAVE
3:51:02	REPORTED THIS VIOLATION OF THE
3:51:03	FTC CONSENT DECREE, AND WE HAVE
3:51:06	LETTERS.
3:51:07	WE'VE HAD CONTACTS WITH FACEBOOK
3:51:12	EMPLOYEES.
3:51:13	I'M GOING TO SUBMIT A LETTER
3:51:16	FROM THE RECORD, WITH YOUR
3:51:19	PERMISSION, THAT INDICATES NOT
3:51:20	ONLY A LACK OF RESOURCES BUT A
3:51:21	LACK OF INTENTION -- ATTENTION
3:51:27	TO PRIVACY.
3:51:29	SO MY RESERVATION ABOUT YOUR
3:51:31	TESTIMONY TODAY IS THAT I DON'T
3:51:34	SEE HOW YOU CAN CHANGE YOUR
3:51:37	BUSINESS MODEL UNLESS THERE ARE
3:51:39	SPECIFIC RULES OF THE ROAD.
3:51:40	YOUR BUSINESS MODEL IS TO
3:51:42	MONETIZE USER INFORMATION TO
3:51:45	MAXIMIZE PROFIT OVER PRIVACY.
3:51:49	AND UNLESS THERE ARE SPECIFIC
3:51:52	RULES AND REQUIREMENTS ENFORCED
3:51:54	BY AN OUTSIDE AGENCY, I HAVE NO
3:51:59	ASSURANCE THAT THESE KINDS OF,
3:52:01	A., COMMITS ARE GOING TO PRODUCE
3:52:05	ACTION.
3:52:06	SO I WANT TO ASK YOU A COUPLE OF
3:52:09	VERY SPECIFIC QUESTIONS, AND
3:52:10	THEY'RE BASED ON LEGISLATION
3:52:11	THAT I'VE OFFERED.
3:52:16	LEGISLATION THAT SENATOR MARCY
3:52:17	IS INTRODUCING TODAY.
3:52:19	THE CONSENT ACT, WHICH I'M
3:52:20	JOINING.
3:52:21	DON'T YOU AGREE THAT COMPANIES
3:52:22	OUGHT TO BE REQUIRED TO PROVIDE
3:52:29	USERS WITH CLEAR, PLAIN
3:52:31	INFORMATION ABOUT HOW THEIR DATA
3:52:32	WILL BE USED AND SPECIFIC
3:52:35	ABILITY TO CONSENT TO THE USE OF
3:52:39	THAT INFORMATION?
3:52:42	>> SENATOR, I GENERALLY AGREE
3:52:43	WITH WHAT YOU'RE SAYING.
3:52:44	I LAID IT OUT EARLIER WHEN I
3:52:47	TALKED ABOUT WHAT --
3:52:47	>> WOULD YOU AGREE TO AN OPT-IN
3:52:50	AS OPPOSED TO AN OPT-OUT?
3:52:53	>> SENATOR, I THINK THAT THAT IS
3:52:57	CERTAINLY MAKES SENSE TO
3:52:58	DISCUSS, AND I THINK THE DETAILS
3:53:00	AROUND THIS MATTER A LOT.
3:53:02	>> WOULD YOU AGREE THAT USERS
3:53:03	SHOULD BE ABLE TO ACCESS ALL OF
3:53:06	THEIR INFORMATION?
3:53:07	>> SENATOR, YES, OF COURSE.
3:53:10	>> ALL THE INFORMATION THAT YOU
3:53:12	COLLECT AS A RESULT OF
3:53:12	PURCHASING FROM DATA BROKERS AS
3:53:14	WELL AS TRACKING THEM?
3:53:16	>> SENATOR, WE HAVE ALREADY A
3:53:21	DOWNLOAD YOUR INFORMATION TOOL
3:53:21	THAT ALLOWS PEOPLE TO SEE AND
3:53:23	TAKE OUT ALL THE INFORMATION
3:53:26	THAT FACEBOOK -- THEY'VE PUT
3:53:27	INTO FACEBOOK OR FACEBOOK KNOWS
3:53:29	ABOUT THEM.
3:53:30	I AGREE, WE ALREADY HAVE THAT.
3:53:31	>> I HAVE A NUMBER OF OTHER
3:53:33	SPECIFIC REQUESTS THAT YOU AGREE
3:53:36	TO SUPPORT AS PART OF
3:53:38	LEGISLATION.
3:53:38	I THINK LEGISLATION IS NECESSARY
3:53:40	FOR THE RULES OF THE ROAD HAVE
3:53:42	TO BE THE RESULT OF
3:53:45	CONGRESSIONAL ACTION.
3:53:47	WE HAVE -- FACEBOOK HAS
3:53:50	PARTICIPATED RECENTLY IN THE
3:53:54	FIGHT AGAINST SCOURGE -- THE
3:53:56	SCOURGE OF SEX TRAFFICKING AND
3:53:57	THE BILL THAT WE'VE JUST PASSED
3:53:59	AND WILL BE SIGNED INTO LAW
3:54:02	TOMORROW.
3:54:02	THE STOP EXPLOITING SEX
3:54:04	TRAFFICKING ACT WAS THE RESULT
3:54:08	OF OUR COOPERATION.
3:54:08	I HOPE WE CAN COOPERATE ON THIS
3:54:09	KIND OF MEASURE, AS WELL.
3:54:10	>> SENATOR, I LOOK FORWARD TO
3:54:11	HAVING MY TEAM WORK WITH YOU ON
3:54:14	THIS.
3:54:14	>> SENATOR CRUZ.
3:54:15	>> THANK YOU, MR.  CHAIRMAN.
3:54:17	MR. ZUCKERBERG, WELCOME.
3:54:19	THANK YOU FOR BEING HERE.
3:54:20	DOES FACEBOOK CONSIDER ITSELF A
3:54:22	NEUTRAL PUBLIC FORUM?
3:54:24	>> SENATOR, WE CONSIDER
3:54:25	OURSELVES TO BE A PLATFORM FOR
3:54:27	ALL IDEAS.
3:54:29	>> LET ME ASK THE QUESTION
3:54:32	AGAIN.
3:54:32	DOES FACEBOOK CONSIDER ITSELF TO
3:54:34	BE A NEUTRAL PUBLIC FORUM.
3:54:35	THE REPRESENTATIVES OF YOUR
3:54:36	COMPANY HAVE GIVEN CONFLICTING
3:54:37	ANSWERS ON THIS.
3:54:38	ARE YOU A FIRST AMENDMENT
3:54:40	SPEAKER EXPRESSING YOUR VIEWS OR
3:54:42	A NEUTRAL PUBLIC FORUM ALLOWING
3:54:44	EVERYONE TO SPEAK.
3:54:45	>> HERE IS HOW WE THINK ABOUT
3:54:46	THIS, SENATOR, I DON'T BELIEVE
3:54:48	THAT -- THERE ARE CERTAIN
3:54:49	CONTENT THAT CLEARLY WE DO NOT
3:54:52	ALLOW.
3:54:53	RIGHT.
3:54:53	HATE SPEECH, TERRORIST CONTENT,
3:54:57	NUDITY.
3:54:57	ANYTHING THAT MAKES PEOPLE FEEL
3:54:59	UNSAFE IN THE COMMUNITY.
3:55:05	THAT'S WHY WE TRY TO REFER AS A
3:55:08	PLATFORM --
3:55:08	>> THE TIME IS CONSTRAINT.
3:55:09	IT'S A SIMPLE QUESTION.
3:55:11	THE PREDICATE FOR SECTION 230
3:55:13	UNDER THE CDA IS THAT YOU'RE A
3:55:17	NEUTRAL PUBLIC FORUM.
3:55:18	DO YOU CONSIDER YOURSELF A
3:55:19	NEUTRAL PUBLIC FORUM.
3:55:20	ARE YOU ENGAGED IN POLITICAL
3:55:22	SPEECH, WHICH IS YOUR RIGHT
3:55:24	UNDER THE FIRST AMENDMENT?
3:55:25	>> OUR GOAL IS NOT TO ENGAGE IN
3:55:27	POLITICAL SPEECH.
3:55:27	I'M NOT THAT FAMILIAR WITH THE
3:55:29	SPECIFIC LEGAL LANGUAGE OF THE
3:55:31	LAW THAT YOU SPEAK TO, SO I
3:55:33	WOULD NEED TO FOLLOW UP WITH YOU
3:55:34	ON THAT.
3:55:35	I'M JUST TRYING TO LAY OUT HOW
3:55:38	BROADLY I THINK ABOUT THIS.
3:55:39	>> I WILL SAY THERE ARE A GREAT
3:55:41	MANY AMERICANS, MR. ZUCKERBERG,
3:55:44	I THINK ARE DEEPLY CONCERNED
3:55:45	THAT FACEBOOK AND OTHER TECH
3:55:48	COMPANIES ARE ENGAGED IN A
3:55:51	PERVASIVE PATTERN OF BIAS AND
3:55:52	POLITICAL CENSORSHIP.
3:55:54	THERE HAVE BEEN NUMEROUS
3:55:55	INSTANCES WITH FACEBOOK.
3:55:57	IN MAY OF 2016 GIZMO REPORTED
3:56:03	THAT FACEBOOK SUPPRESSED
3:56:06	CONSERVATIVE NEWS.
3:56:08	INCLUDING STORIES AND MITT
3:56:11	ROMNEY, LOUIS LEARNER, GLENN
3:56:13	BECK.
3:56:14	IN ADDITION TO THAT, FACEBOOK
3:56:16	HAS INITIALLY SHUT DOWN THE
3:56:19	CHICK-FIL-A APPRECIATION DAY
3:56:20	PAGE.
3:56:21	HAS BLOCKED A POST OF FOX NEWS
3:56:23	REPORTER.
3:56:24	HAS BLOCKED OVER TWO DOZEN
3:56:27	CATHOLIC PAGES, AND MOST
3:56:29	RECENTLY BLOCKED TRUMP
3:56:31	SUPPORTERS DIAMOND AND SILKS
3:56:33	PAGE WITH 1.2 MILLION FACEBOOK
3:56:37	FOLLOWERS DETERMINING THEIR
3:56:39	CONTENT AND BRAND WERE, QUOTE,
3:56:42	"UNSAFE TO THE COMMUNITY
3:56:44	ACCOUNTS.
3:56:44	TO MANY AMERICANS THAT APPEARS
3:56:46	TO BE A PERVASIVE PATTERN OF
3:56:49	POLITICAL BIAS.
3:56:49	>> LET ME SAY A FEW THINGS ABOUT
3:56:51	THIS, SENATOR.
3:56:52	FIRST, I UNDERSTAND WHERE THAT
3:56:55	CONCERN IS COMING FROM BECAUSE
3:56:56	FACEBOOK AND THE TECH INDUSTRY
3:56:57	ARE LOCATED IN SILICON VALLEY,
3:56:58	WHICH IS AN EXTREMELY
3:57:00	LEFT-LEANING PLACE.
3:57:01	AND THIS IS ACTUALLY A CONCERN
3:57:03	THAT I HAVE AND THAT I TRY TO
3:57:05	ROOT OUT IN THE COMPANY IS
3:57:06	MAKING SURE THAT WE DON'T HAVE
3:57:08	ANY BIAS IN THE WORK THAT WE DO.
3:57:10	I THINK IT IS A FAIR CONCERN
3:57:13	THAT PEOPLE WOULD --
3:57:14	>> LET ME ASK THIS QUESTION, ARE
3:57:17	YOU AWARE OF ANY AD OR PAGE THAT
3:57:19	HAS BEEN TAKEN DOWN FROM PLANNED
3:57:22	PARENTHOOD?
3:57:24	>> SENATOR, I'M NOT.
3:57:27	>> HOW ABOUT MOVEON.ORG.
3:57:33	OR ANY DEMOCRATIC CANDIDATE FOR
3:57:33	OFFICE?
3:57:34	>> I'M NOT SPECIFICALLY AWARE.
3:57:36	I MEAN, I'M NOT SURE.
3:57:37	>> IN YOUR TESTIMONY, YOU SAY
3:57:39	THAT YOU HAVE 15 TO 20,000
3:57:41	PEOPLE WORKING ON SECURITY AND
3:57:43	CONTENT REVIEW.
3:57:45	DO YOU KNOW THE POLITICAL
3:57:46	ORIENTATION OF THOSE 15 TO
3:57:48	20,000 PEOPLE ENGAGED IN CONTENT
3:57:51	REVIEW?
3:57:52	>> NO, SENATOR, WE DON'T
3:57:55	GENERALLY ASK PEOPLE ABOUT THEIR
3:57:56	POLITICAL ORIENTATION WHEN
3:57:57	JOINING THE COMPANY.
3:57:58	>> AS CEO, HAVE YOU MADE HIRING
3:58:05	OR FIRING DECISIONS BASED ON
3:58:07	WHAT CANDIDATES THEY SUPPORTED?
3:58:09	>> WHY IS PALMER LUCKY --
3:58:12	>> THAT'S SPECIFIC --
3:58:15	>> YOU DIDN'T MAKE DECISIONS
3:58:16	BASED ON --
3:58:17	>> I CAN COMMIT IT WAS NOT
3:58:18	BECAUSE OF A POLITICAL VIEW.
3:58:20	>> DO YOU KNOW OF THE 15 TO
3:58:22	20,000 PEOPLE ENGAGED IN CONTENT
3:58:25	REVIEW, HOW MANY, IF ANY, HAVE
3:58:27	EVER SUPPORTED FINANCIALLY A
3:58:28	REPUBLICAN CANDIDATE FOR OFFICE?
3:58:31	>> SENATOR, I DO NOT KNOW THAT.
3:58:33	>> YOUR TESTIMONY SAYS IT IS NOT
3:58:36	ENOUGH THAT WE JUST CONNECT
3:58:37	PEOPLE.
3:58:37	WE HAVE TO MAKE SURE THOSE
3:58:39	CONNECTIONS ARE POSITIVE.
3:58:41	IT SAYS WE HAVE TO MAKE SURE
3:58:43	PEOPLE AREN'T USING THEIR VOICE
3:58:45	TO HURT PEOPLE OR SPREAD
3:58:47	MISINFORMATION.
3:58:47	WE HAVE A RESPONSIBILITY NOT
3:58:49	JUST TO BUILD TOOLS, TO MAKE
3:58:50	SURE THOSE TOOLS ARE USED FOR
3:58:52	GOOD.
3:58:53	MR. ZUCKERBERG, DO YOU FEEL IT'S
3:58:55	YOUR RESPONSIBILITY TO ASSESS
3:58:56	GOODERS WHETHER THEY ARE GOOSE
3:58:58	AND POSITIVE CONNECTIONS OR
3:58:59	ONCES THAT THOSE 15 TO 20,000
3:59:02	PEOPLE DEEM UNACCEPTABLE OR
3:59:03	DEPLORABLE?
3:59:04	>> SENATOR, YOU'RE ASKING ME
3:59:05	PERSONALLY?
3:59:06	>> FACEBOOK.
3:59:07	>> SENATOR, I THINK THERE ARE A
3:59:08	NUMBER OF THINGS THAT WE WOULD
3:59:10	ALL AGREE ARE CLEARLY -- FOREIGN
3:59:14	INTERFERENCE, TERRORISM,
3:59:16	SELF-HARM.
3:59:17	>> CENSORSHIP.
3:59:18	>>WELL, I THINK THAT YOU WOULD
3:59:20	PROBABLY AGREE THAT WE SHOULD
3:59:22	REMOVE TERRORIST PROPAGANDA FROM
3:59:23	THE SERVICE.
3:59:24	SO THAT I AGREE.
3:59:25	I THINK IT'S CLEARLY BAD
3:59:27	ACTIVITY THAT WE WANT TO GET
3:59:28	DOWN AND WE'RE GENERALLY PROUD
3:59:29	OF HOW WELL WE DO AT THAT.
3:59:32	NOW, WHAT I CAN SAY, AND I WANT
3:59:33	TO GET THIS IN BEFORE THE END
3:59:36	HERE, IS THAT I'M VERY COMMITTED
3:59:38	TO MAKING SURE THAT FACEBOOK IS
3:59:39	A PLATFORM FOR ALL IDEAS.
3:59:41	THAT IS A VERY IMPORTANT
3:59:43	FOUNDING PRINCIPLE OF WHAT WE
3:59:45	DO.
3:59:45	WE'RE PROUD OF THE DISCOURSE AND
3:59:47	THE DIFFERENT IDEAS THAT PEOPLE
3:59:48	CAN SHARE ON THE SERVICE.
3:59:49	AND THAT IS SOMETHING THAT IS AS
3:59:51	LONG AS I'M RUNNING THE COMPANY,
3:59:53	I'M GOING TO BE COMMITTED TO
3:59:54	MAKING SURE IS THE CASE.
3:59:56	>> THANK YOU, SENATOR CRUZ.
3:59:57	WANT TO BREAK NOW?
4:00:00	OR KEEP GOING?
4:00:02	SURE.
4:00:02	I MEAN, THAT WAS PRETTY GOOD.
4:00:04	ALL RIGHT.
4:00:04	>> ALL RIGHT.
4:00:10	WE HAVE SENATOR WHITEHOUSE IS UP
4:00:14	NEXT.
4:00:15	WE HAVE BEEN GOING A GOOD TWO
4:00:17	HOURS.
4:00:17	WE'LL RECESS FOR FIVE MINUTES
4:00:18	AND RECONVENE.
4:00:19	>> THANK YOU.
4:00:22	>>> WE'VE BEEN WATCHING THE
4:00:25	TESTIMONY OF MARK ZUCKERBERG,
4:00:26	CEO OF FACEBOOK TAKING A
4:00:29	GRILLING FROM SENATORS AND THERE
4:00:30	ARE PLENTY MORE TO COME.
4:00:31	THIS IS A HEARING EXPECTED TO
4:00:32	LAST SEVERAL HOURS.
4:00:33	AS NOTED, WE'RE ALMOST A COUPLE
4:00:35	OF HOURS INTO IT.
4:00:36	THEY'RE TAKING SHORT BREAK.
4:00:37	WE WANT TO BRING IN NOW JO LING
4:00:44	KENT, WHAT IS THE PERCEPTION OF
4:00:46	HOW ZUCKERBERG IS HANDLING WHAT
4:00:49	BECAME MORE AGGRESSIVE IN THE
4:00:50	LAST FEW LINES OF QUESTIONING?
4:00:53	>> Reporter: YEAH, AT THE
4:00:54	BEGINNING HERE HE WAS NOT PELTED
4:00:55	WITH THE AGGRESSIVE QUESTIONS
4:00:56	THAT A LOT OF US WERE EXPECTING.
4:00:58	BUT HE HAS BEEN -- SENATOR
4:01:01	BLUMENTHAL, FOR EXAMPLE, GOING
4:01:02	AFTER THE FACEBOOK CEO FOR
4:01:05	WILLFUL IGNORANCE OF THE ISSUES
4:01:07	RELATING TO CAMBRIDGE ANALYTICA
4:01:08	AND SOME OF THE OTHER QUESTIONS
4:01:09	THAT HE HAD FOR HIM.
4:01:10	BUT THERE ARE A COUPLE OF MAJOR
4:01:12	PLOT POINTS HERE I WANT TO HIT
4:01:13	ON THAT WE LEARNED ABOUT
4:01:14	FACEBOOK THAT WE NEED TO TALK
4:01:16	ABOUT.
4:01:16	FIRST, FACEBOOK DID NOT DISCLOSE
4:01:18	THE ISSUE WITH CAMBRIDGE
4:01:20	ANALYTICA TO THE FEDERAL TRADE
4:01:21	COMMISSION.
4:01:21	THIS IS THE FIRST TIME THAT WE
4:01:22	HAVE HEARD THIS.
4:01:23	SECOND OF ALL, FACEBOOK CEO MARK
4:01:26	ZUCKERBERG DISCLOSING THAT HE
4:01:28	DID WORK -- FACEBOOK IS WORKING,
4:01:31	RATHER WITH THE SPECIAL COUNSEL
4:01:34	OFFICE, ROBERT MUELLER'S OFFICE.
4:01:36	THERE WAS BIT OF WAFFLING OF
4:01:37	WHETHER OR NOT THERE WAS A
4:01:39	SUBPOENA SERVED TO THE COMPANY.
4:01:42	THEY DID CONFIRM, FOR THE FIRST
4:01:43	TIME, ON THE RECORD, THAT
4:01:45	FACEBOOK IS WORKING WITH THE
4:01:47	SPECIAL COUNSEL'S OFFICE.
4:01:48	WE'RE STARTING TO LEARN A LITTLE
4:01:49	BIT MORE AROUND THE LINE OF
4:01:51	QUESTIONING, BUT ZUCKERBERG
4:01:55	SAYING -- APOLOGIZING FOR THE
4:01:56	BEHAVIOR OF THE COMPANY BUT A
4:01:57	LIGHTER ZUCKERBERG HERE THAT
4:01:58	WE'RE SEEING A LITTLE BIT
4:02:00	DIFFERENT OF AN ATTITUDE THAN
4:02:01	WE'VE SEEN IN YEARS PAST,
4:02:02	LESTER.
4:02:03	>> JO LING KENT, AS THEY TAKE A
4:02:05	BREAK.
4:02:05	SAVANNAH GUTHRIE WITH ME.
4:02:06	>> THAT'S RIGHT.
4:02:08	AND KARA SWISHER IS JOINING US.
4:02:11	A SUBJECT MATTER EXPERT WHO
4:02:12	SPENDS ALL DAY LONG THINKING
4:02:14	ABOUT THESE ISSUES.
4:02:15	DO YOU FEEL THAT ANY SENATOR
4:02:17	HERE HAS REALLY LAID A GLOVE ON
4:02:19	MARK ZUCKERBERG, YOU KNOW,
4:02:20	GRILLED HIM TO THE EXTENT IT
4:02:22	WOULD MAKE A REAL DIFFERENCE?
4:02:24	OR DOES THIS FEEL LIKE STUFF HE
4:02:26	WAS PREPARED FOR AND HANDLING
4:02:28	WELL?
4:02:29	>> WELL, IF YOU THINK BEING
4:02:32	SLAPPED WITH WET NOODLES IS
4:02:32	HARD, I GUESS IT'S HARD.
4:02:33	THIS HAS BEEN EASY FOR MARK.
4:02:34	AND HE'S DONE A NICE JOB
4:02:36	ANSWERING VERY EASY QUESTIONS.
4:02:38	I MEAN, I THINK ONLY SENATOR
4:02:43	BLUMENTHAL AND SENATOR DURBIN
4:02:45	NOTED THE ISSUES.
4:02:46	THESE ARE BIGGER ISSUES CALLING
4:02:48	WILLFUL IGNORANCE, I WOULD AGREE
4:02:51	WITH.
4:02:51	SENATOR DURBIN BROUGHT UP THE
4:02:52	HOTEL ANALOGY.
4:02:54	I THINK IT SHOOK MARK A TINY
4:02:56	BIT.
4:02:56	OTHERWISE IT'S BEEN AN EASY
4:02:57	MORNING FOR THE FACEBOOK CEO.
4:03:01	HE'S HANDLED IT JUST FINE
4:03:02	BECAUSE IT'S EASY.
4:03:02	>> WHAT ABOUT THE ISSUE OF THE
4:03:04	CONSENT DECREE, WHICH RICHARD
4:03:09	BLUMENTHAL BROUGHT UP.
4:03:10	DOES FACEBOOK FACE JEOPARDY?
4:03:13	PREVIOUS MISGIVINGS?
4:03:15	>> I THINK THIS IS AN
4:03:16	INTERESTING AREA.
4:03:16	I THINK THEY GRIEVED TO A
4:03:17	CERTAIN AMOUNT OF THINGS AND THE
4:03:19	QUESTION IS CAN THEY PROVE THEY
4:03:21	VIOLATED THESE THINGS?
4:03:22	OR CAN THEY MAKE THE CAUSE,
4:03:24	EXCEL, WE DIDN'T MANAGE IT WELL.
4:03:25	WE MEANT TO DO IT.
4:03:26	WE HAVE THE RULES IN PLACE.
4:03:27	SO THAT'S GOING TO BE THE HARD
4:03:28	BAA -- PART IS PROVING THEY
4:03:32	MEANT TO DO IT OR WILLFULLY DID
4:03:35	IT.
4:03:35	I THINK IT'S INTERESTING SENATOR
4:03:38	BLUMENTHAL USED THE TERM
4:03:40	"WILLFUL."
4:03:40	I WOULD AGREE WITH THAT
4:03:43	DESCRIPTION RATHER STRONGLY.
4:03:44	>> THANK YOU.
4:03:44	>>> AND TURNING TO KASIE HUNT
4:03:46	WHO IS COVERING THE HEARING WITH
4:03:49	US.
4:03:49	AS OFTEN HAPPENS, WHEN YOU WATCH
4:03:51	A HEARING ON CAPITOL HILL, WE
4:03:52	HAVE TWO COMMITTEES HERE AND
4:03:54	BOTH SIDES OF THE AISLE.
4:03:54	THERE ARE SO MANY ISSUES YOU CAN
4:03:57	GET INTO.
4:03:57	YOU CAN TALK ABOUT PRIVACY,
4:04:00	RUSSIAN INTERFERENCE.
4:04:02	WE HEARD SENATOR CRUZ TALKING
4:04:03	ABOUT CENSORSHIP.
4:04:04	EACH SENATOR IS BRINGING HIS OR
4:04:05	HER AGENDA TO THE QUESTIONING.
4:04:07	>> Reporter: 40 PLUS SENATORS
4:04:09	QUESTIONING MARK ZUCKERBERG
4:04:10	TODAY IN A RARE JOINT HEARING.
4:04:12	AND YOU'RE ABSOLUTELY RIGHT.
4:04:13	EACH ONE BRINGING THEIR OWN
4:04:16	AGENDA, THEIR OWN SET OF
4:04:17	QUESTIONS, AND SOMETIMES, YOU
4:04:19	KNOW, FRANKLY, NOT ALLOWING
4:04:20	ZUCKERBERG TO FINISH AN ANSWER
4:04:21	BECAUSE THEY WANT TO ACTUALLY
4:04:23	MAKE A POINT.
4:04:25	AND MANY OF MY SOURCES POINTED
4:04:27	OUT THERE WERE INSTANCES
4:04:28	THROUGHOUT THIS HEARING WHERE
4:04:29	MANY OF THESE SENATORS WHO, YOU
4:04:30	KNOW, ARE IN THEIR 60s, 70s,
4:04:34	EVEN OLDER DON'T NECESSARILY
4:04:36	UNDERSTAND THE TECHNOLOGY THAT
4:04:37	THEY'RE ASKING ABOUT.
4:04:39	AND THAT WAS EVIDENT HERE AND
4:04:41	THAT, FRANKLY, YOU KNOW, GAVE
4:04:43	ZUCKERBERG AN OPENING TO DEFEND
4:04:45	HIS COMPANY.
4:04:45	BUT I DO THINK THAT WHAT IS
4:04:47	IMPORTANT FROM THE CONGRESSIONAL
4:04:49	SIDE OF THIS IS WHAT, AT THE END
4:04:51	OF THE DAY, IS CONGRESS GOING TO
4:04:54	DO OR NOT DO TO REGULATE BIG
4:04:58	TECH?
4:04:58	TO POTENTIALLY PROTECT USERS'
4:05:01	PRIVACY.
4:05:01	MARK ZUCKERBERG HAS BEEN SAYING,
4:05:02	YES, WE SUPPORT BEING REGULATED.
4:05:04	AND THERE IS SOME TRUTH IN THAT
4:05:06	FACEBOOK HAS SUPPORTED -- AMY
4:05:18	KLOBCHAR.
4:05:18	THERE'S A MIXED RECORD ON STATE
4:05:20	HOUSES OR HERE IN THE U.S.
4:05:22	CONGRESS.
4:05:22	THERE'S GOING TO BE SOME REAL
4:05:23	TESTS FOR THESE TECHNOLOGY
4:05:24	COMPANIES.
4:05:25	ARE THEY ACTUALLY GOING TO STEP
4:05:26	UP AND SAY, OKAY, WE'RE WILLING
4:05:28	TO ACCEPT SOME RULES THAT WE
4:05:30	CAN'T NECESSARILY MAKE FOR
4:05:31	OURSELVES.
4:05:32	SENATOR LINDSEY GRAHAM HIT ON
4:05:33	THIS, AS WELL.
4:05:34	PRESSING ZUCKERBERG ON WHETHER
4:05:35	THEY HAVE A MONOPOLY, THAT'S
4:05:38	ANOTHER WAY, OF COURSE, THE
4:05:39	GOVERNMENT COULD REGULATE BIG
4:05:41	TECH.
4:05:41	SOME BIG QUESTIONS TO GRAPPLE
4:05:43	WITH HERE.
4:05:45	AND, YOU KNOW, THIS CONGRESS IN
4:05:45	GENERAL IS NOT KNOWN FOR MOVING
4:05:48	QUICKLY AND TECHNOLOGY HAS MOVED
4:05:49	FASTER THAN THEY HAVE.
4:05:50	THEY ARE, IN WAYS, BEHIND THE
4:05:53	EIGHT BALL, ALONG WITH MARK
4:05:55	ZUCKERBERG.
4:05:56	>> I FORGET WHO IT WAS
4:05:58	REGULATION.
4:05:58	WOULD YOU BE WILLING TO ACCEPT
4:06:05	REGULATION.
4:06:05	MARK SAID I'LL GET BACK TO YOU.
4:06:06	>> I CALL IT AS A RECOVERING
4:06:09	LAWYER WEASEL WORDS.
4:06:10	WE'LL ACCEPT REGULATION WHERE
4:06:11	IT'S APPROPRIATE.
4:06:12	THAT'S WHERE ALL THE ACTION IS.
4:06:13	WHETHER OR NOT AND I THINK WHAT
4:06:14	YOU RAISED WITH KARA SWISHER IS
4:06:16	THE OTHER BIG PIECE.
4:06:18	THERE'S TWO THINGS FACEBOOK IS
4:06:19	FACING.
4:06:20	POTENTIAL REGULATION AND THEN
4:06:21	PERHAPS MORE CRUCIALLY TO THEIR
4:06:23	BOTTOM LINE AND FINANCIALLY IS
4:06:24	THIS WHETHER OR NOT THEY'RE IN
4:06:25	VIOLATION OF THIS AGREEMENT THEY
4:06:28	MADE WITH THE FEDERAL TRADE
4:06:29	COMMISSION STEMMING FROM ILLEGAL
4:06:30	ACTION IN 2011.
4:06:31	>> THAT CAN BE BIG FINES.
4:06:33	>> HUGE FINES.
4:06:35	KARA, LET'S GO BACK TO YOU.
4:06:36	I KNOW IT'S SOMETHING YOU COVER
4:06:37	A LOT.
4:06:38	I MEAN, THAT'S WHERE NOW YOU'RE
4:06:40	STARTING TO TALK ABOUT SOME
4:06:43	HITTING FACEBOOK WHERE IT HURTS.
4:06:45	WE'VE SEEN THE STOCK PRICE TANK.
4:06:47	WHEN YOU'VE SEEN RICHARD
4:06:49	BLUMENTHAL PUT UP A CHART WITH A
4:06:50	TERM OF SERVICE THAT SEEMS TO BE
4:06:52	ON ITS SURFACE AND CLEAR
4:06:54	VIOLATION OF THE AGREEMENT WITH
4:06:56	THE FTC, ONE IMAGINES THAT WAS A
4:06:58	DIFFICULT MOMENT FOR MARK
4:07:00	ZUCKERBERG.
4:07:00	>> YEAH, ABSOLUTELY.
4:07:01	I THINK QUESTION IS ARE THEY
4:07:02	GOING TO FACE -- THAT'S WHERE
4:07:05	FACEBOOK HAD MOST OF THE
4:07:06	PROBLEMS IS WITH THE STATES
4:07:07	ATTORNEY GENERALS, WHICH IS
4:07:08	INTERESTING.
4:07:09	MOSTLY TECH COMPANIES HAVE BEEN
4:07:10	GIVEN A PASS BY THE FEDERAL
4:07:12	GOVERNMENT.
4:07:13	NOT JUST -- SINCE FOREVER,
4:07:15	PRETTY MUCH.
4:07:15	IT'LL BE INTERESTING TO SEE IF
4:07:16	THEY FOLLOW UP ON THAT.
4:07:18	IF THAT HAPPENS.
4:07:19	THESE ARE BIG AREAS, OBVIOUSLY,
4:07:21	PUBLIC PERCEPTION IS A LOT.
4:07:22	ARE THESE PEOPLE TELLING THE
4:07:24	TRUTH.
4:07:24	BUT THE STOCK PRICE HAS
4:07:25	RECOVERED A LITTLE BIT TODAY
4:07:27	BECAUSE MARK IS DOING WELL,
4:07:28	LARGELY BECAUSE THE QUESTIONS
4:07:30	ARE LIGHT, LIGHT QUESTIONS FOR
4:07:31	HIM.
4:07:32	SO WE'LL SEE IF IT RESULTS IN
4:07:34	ANYTHING.
4:07:34	I DON'T KNOW WHAT YOU THINK.
4:07:44	>> THERE WEREN'T A LOT OF
4:07:45	FIREWORKS.
4:07:46	LIVE COVERAGE OF THE FACEBOOK
4:07:47	HEARING WILL CONTINUE ON
4:07:49	NBCNEWS.COM BUT THIS BRINGS OUR
4:07:50	LIVE COVERAGE OF THE NETWORK TO
4:07:52	A CLOSE.
4:07:52	THE HEARING IS, OF COURSE, ONE
4:07:55	OF THE BIG STORIES WE'RE
4:07:56	COVERING TODAY ALONG WITH
4:07:58	POSSIBLE NEW U.S. MILITARY
4:07:59	ACTION IN SYRIA, WITH THE
4:08:00	RESIGNATION OF PRESIDENT TRUMP'S
4:08:01	HOMELAND SECURITY ADVISOR, AND
4:08:03	THE STATUS OF THE MUELLER
4:08:05	INVESTIGATION IN THE WAKE OF
4:08:07	YESTERDAY'S FBI RAID ON THE
4:08:08	OFFICES OF THE PRESIDENT'S
4:08:10	PERSONAL LAWYER.
4:08:11	SAVANNAH, YOU'LL, OF COURSE,
4:08:13	HAVE MORE TOMORROW ON "TODAY."
4:08:15	AND I'LL HAVE COMPLETE DETAILS
4:08:17	ON NBC NIGHTLY NEWS ON THIS BUSY
4:08:19	NEWS DAY.
4:08:20	I'M LESTER HOLT.
4:08:21	NBC NEWS, NEW YORK.
4:08:22	HAVE A GOOD AFTERNOON, EVERYONE.